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Timber  bondts.  [^ 


Southern  Branch 
of  the 

University  of  California 

Los  Angeles 


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Form  L-9-57n-o.'24 


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Timber   Bonds 


BY 


T.  S.   McGrath 


'33         > 

J  1       > 


CRAIG-WAYNE    COMPANY 

CHICAGO,   ILL. 

51156 


CoPYniGHT,    1911 
BY 

T.  S.  McGRATH 

Entered  Stationers  Hall,  London 

All  lights  reserved 


c      '  c  '       c    '    ■       <. 
<    t       t   t.     <     *  t  t 


TIMBER  BONDS. 

BY 

T.  S.  McGrath. 


Vo  ^  ^:.  \ 
CONTENTS. 

CHAPTERS. 
PREFACE     7 

1.  Timber  Bonds  9-11 

2.  Floating  Debts    12-14 

3.  Funded  Debts   15-18 

i      4.  The  Underwriter    19-21 


5.  Review  of  Business  22-26 

6.  Audit  of.  Books  27-30 

N=i    7.     Examination  of  Property  31-45 

8.  Contract  to  Deliver  Bonds   46-51 

9.  Legal  Features   52-54 

X    10.     The  Trust  Deed   55-332 

N    11.     Style  of  Bonds   333-335 

[    12.     Bond  Circulars   336-448 

^  13.     Sinking  Fund    449-451 

14.  Fire  Risk   452-455 

15.  Loan  Value 456-458 

16.  Technical  Terms 459-463 

17.  Words  and  Phrases  464-504 


PREFACE. 

This  book  treats  the  Timber  Bond  from  a 
purely  practical  basis.  No  attempt  is  made 
to  advance  theories.  When  given  careful  con- 
sideration, the  criticism  of  the  present  sinking 
fund  practice  and  title  examinations  will  be 
acknowledged  sound  by  all  concerned.  No  ef- 
fort has  been  spared  to  make  the  chapters  short 
and  the  language  used  simple  and  clear.  The 
circulars  and  mortgages  quoted  are  given  in 
full  that  they  may  be  safely  followed  for  guides 
and  comparisons. 

I  wish  to  express  my  thanks  to  Mr.  Edward 
E.  Barthell  of  Nashville,  Tennessee,  for  the 
mortgages,  to  Mr.  Calvin  Fentress  of  Lyon, 
Gary  &  Company,  Chicago,  for  ideas  and  criti- 
cims,  to  Mr.  H.  S.  Sackett,  U.  S.  Forest  Service, 
for  information  and  data,  and  to  the  Bond 
Houses  for  circulars  and  suggestions. 

T.  S.  McGeath. 

Chicago,  July  5,  1911. 


CHAPTER  I. 

TIMBER   BONDS. 

Tlie  underlying  strength  of  the  security  be- 
hind the  Timber  Bond  is  steadily  forcing  it  into 
great  favor  with  bankers,  institutions  and  in- 
dividuals. When  the  exact  nature  of  the  in- 
vestment is  fully  understood  by  people  with 
money  the  market  for  timber  bonds  will  become 
very  broad  and  the  six  per  cent  bond  will  pass 
out  of  existence.  Even  now,  timber  bonds  are 
being  sold  on  a  5i/4%  basis.  These  bonds  are 
issues  which  have  been  created  with  the  great- 
est care.  The  cruises  of  the  timber  and  exam- 
inations of  the  physical  properties  have  been 
made,  or  checked,  by  the  private  experts  of  the 
issuing  bond  house.  The  titles  have  been  ex- 
amined at  the  county  seats  and  abstracts  veri- 
fied by  the  original  records.  All  the  legal  proce- 
dure from  the  incorporation  of  the  company 
down  to  the  delivery  of  the  bonds  has  been  cer- 
tified by  eminent  attorneys.  The  books  and 
accounts  have  been  audited  by  experts  who 
are  celebrated  for  the  thoroughness  of  their 
investigations  and  their  insight  into  affairs. 
The  work  of  floating  these  issues  has  been  su- 
perintended from  its  inception,  either  by  ex- 
perts of  the  negotiating  bond  house,  or  the 
underwriters  referred  to  in  chapter  three  of 
this  book. 

9 


10  TIMBER  BONDS 

Forest  fires,  and  the  loss  of  timber  thus 
caused,  is  the  chief  argument  used  against  tim- 
ber bonds.  The  public  gets  its  ideas  of  these 
fires  from  what  has  occurred  in  the  upper  Mis- 
sissippi Valley.  The  situation  of  the  commer- 
cial timber  at  present  practically  removes  this 
fire  risk.  The  chapter  on  forest  fires  will  clearly 
show  this  danger  to  be  greatly  magnified. 

There  are  some  speculative  timber  bond  oper- 
ators now  doing  business  and  some  issues  at 
present  outstanding  that  will  default.  Less  than 
half  of  one  per  cent  of  the  dealers  can  be  classed 
as  speculators,  or  with  a  tendency  toward  rapid 
riches.  Amongst  no  other  class  of  bond  dealers 
is  the  percentage  of  legitimate,  conservative 
and  careful  operators  so  large  as  in  the  Tim- 
ber bond  field. 

The  serial  is  the  only  safe  timber  bond  and 
the  last  maturity  must  fall  due  while  there  is 
ample  stumpage  standing  to  protect  the  prop- 
erty until  the  trust  deed  is  fully  satisfied  and 
the  Trustee  released.  The  sinking  fund  clauses 
should  cover  this  point  clearly  and  thoroughly. 
A  careful  reading  of  the  chapter  on  sinking 
fund  will  enable  the  student  or  banker  to  form 
safe  conclusions. 

Successful  practice  and  the  daily  operations 
of  sound  and  active  traders  is  the  best  guide 
for  those  contemplating  the  timber  bond  field 
either  from  the  outlook  of  borrower,  banker, 
dealer  or  investor.  The  bond  circulars  given  in 
this  book  have  been  selected  with  care  and  will 


TIMBER  BONDS  11 

furnish  material  for  a  complete  survey  of  the 
issues  of  timber  securities  now  outstanding. 
The  circular  form  used  by  the  same  house  for 
different  issues  is  nearly  always  after  a  set 
style,  but  the  values  of  stumpage,  percentage 
loaned,  sinking  funds  and  other  vital  points 
differ  in  each  circular. 

The  legal  opinions  and  legal  procedure  in 
general  must  be  closely  watched  when  dealing 
in  timber  securities.  The  forms  of  mortgage 
given  in  this  book  are  the  best  in  existence  to- 
day and  should  be  carefully  studied.  No  in- 
vestor should  purchase  a  timber  bond  before 
reading  a  copy  of  the  legal  opinion  on  the  issue 
and  noting  if  the  titles  have  been  checked  at  the 
county  seats  and  the  original  records  examined. 

Holders  of  timber  bonds  or  those  wishing  to 
invest  in  such  securities  can  have  the  bonds 
they  own  or  want  to  purchase  examined,  ap- 
praised and  passed  on  by  independent  experts. 
Capitalists  can  now  take  advantage  of  the  high 
returns  on  timber  investments,  and  under 
skilled  guidance  buy  those  that  are  sound  and 
safe. 


CHAPTER  n. 

FLOATING  DEBTS. 

In  the  present  generation  when  the  stump- 
age  owner,  logger  and  millman  are  nearly  al- 
ways the  same  individual,  it  takes  much  more 
capital  to  operate  the  lumber  business  than  it 
did  in  the  old  days.  The  timber  holdings  must 
be  very  large  to  warrant  the  construction  of 
the  modern  mill,  and  supply  it  with  cutting  ma- 
terial for  a  sufficient  number  of  years.  The  log- 
ging equipment  comprises  steam  railways,  loco- 
motives and  cars  in  addition  to  the  woods 
tackle.  All  this  gear  costs  heavily  for  every 
mile  of  road  built  and  every  thousand  feet  of 
timber  taken  out.  The  logging  and  milling 
crews  are  larger,  the  commissary  more  exten- 
sive, the  pay  rolls  heavier,  the  liabilities  of 
every  nature  more  pressing.  The  cost  of  stump- 
age  is  tied  up  for  a  long  term  of  years  and  can 
be  collected  only  in  small  portions  as  the  land 
is  logged  off.  The  money  spent  in  the  cut- 
ting of  trails,  building  of  railroads  and  con- 
struction of  mills  is  a  permanent  investment 
that  practically  can  never  be  reclaimed.  The 
operator  is  forced  to  extend  credit  to  the  peo- 
ple who  buy  lumber  from  him  and  he  carries 
them  for  any  length  of  time  from  ten  days  up 
to  six  months.    He  must  pay  freights  in  cash, 

12 


FLOATING  DEBTS  18 

taxes  are  exorbitant  and  inexorable,  and  pay 
rolls  can  never  be  postponed. 

In  time  the  floating  debts  and  quick  assets 
get  out  of  all  proportion  and  must  be  adjusted. 
An  investigation  is  instituted  to  study  each 
part  and  phase  of  the  business  in  order  to  learn 
how  to  relieve  the  situation.  This  study  com- 
mences with  the  timber  holdings  in  the  hope 
that  some  of  them  may  be  so  situated  as  to  per- 
mit being  sold  and  turned  into  cash  without 
hurting  the  logging  layout  or  hampering  the 
future  operations.  Instead  of  being  in  a  posi- 
tion to  sell  stumpage,  it  is  usually  found  that 
the  mill  is  sawing  up  timber  a  little  faster  than 
was  originally  expected  and  not  only  is  selling 
stumpage  out  of  the  question,  but  to  be  entirely 
easy  over  the  big  investment  in  the  mill,  log- 
ging road  and  equipment,  more  timber  should 
be  purchased.  The  investigation  then  moves 
on  to  the  railroad,  railway  equipment  and  log- 
ging equipment  in  order  to  see  if  some  of  the 
locomotives  can  be  spared,  lighter  rails  laid, 
fewer  cars  used  or  if  a  sa^dng  can  be  effected 
in  donkey  engines,  cable  or  other  gear.  It  is 
found  here  that  the  timber  is  being  logged 
faster  than  was.  at  first  planned,  that  locomo- 
tives and  cars  are  working  up  to  capacity,  that 
donkey  engines  are  crowded  and  that  a  heavier 
rail  could  be  used  much  more  economically  than 
the  light  one  at  first  put  down  and  now  doing 
service.  The  maintenance  of  road  has  not  been 
kept  up  to  standard  and  the  equipment  has  been 


14  TIMBER  BONDS 

SO  busy  that  maintenance  of  equipment  has  not 
been  attempted.  It  is  only  a  short  time  until 
the  rolling  stock  must  commence  going  to  the 
shop  for  extensive  repairs.  No  curtailment  can 
be  effected  here.  Instead  an  expenditure  must 
be  made  for  reserve  rolling  stock,  more  rails, 
donkey  engines  and  tackle.  The  roadbed  ought 
to  have  considerable  money  spent  on  it  and 
altogether  quite  an  outlay  should  be  made  in 
this  end  of  the  business.  The  examination  then 
moves  to  the  mill  to  see  if  any  economies  or  sav- 
ings can  be  effected  there.  The  mill  is  of  the 
most  modern  construction,  under  thoroughly 
efficient  management  and  operated  with  full 
care  and  frugality.  It  cannot  be  improved  on. 
The  books  are  then  audited  and  a  general  re- 
view of  the  business  is  made  to  learn  the  best 
plan  of  action.  The  final  result  of  all  these 
searching  investigations  is  to  convince  the  oper- 
ator that  a  business  where  the  capital  is  chiefly 
in  the  form  of  what  might  be  called  ''funded 
assets"  cannot  be  conducted  on  the  basis  of 
a  business  having  its  capital  in  the  form  of 
floating  assets. 


CHAPTER  III. 

FUNDED    DEBTS. 

Owing  to  the  nature  of  the  business,  logging 
enterprises  and  sawmills  are  often  located  in 
places  where  the  banking  facilities  are  very 
limited.  Small  banks  cannot  extend  accommo- 
dations of  much  value  to  a  large  undertaking 
like  the  modern  logging  and  milling  projects. 
The  operators  are  forced  to  seek  elsewhere  for 
money  credit.  Short  time  loans  from  nearby 
banks  are  not  satisfactory,  as  they  are  liable 
to  be  called  at  the  most  inopportune  mo- 
ment. The  banks  in  times  of  need  must  first 
care  for  their  local  customers. 

Commercial  paper  has  not  proved  suitable  to 
the  mill  man.  The  floating  of  such  paper,  and 
meeting  the  interest  on  and  retirements  of  short 
time  notes,  forces  him  to  operate  in  dull  seasons 
and  on  losing  prices.  He  must  care  for  his 
floating  debts  no  matter  how  large  the  imme- 
diate loss  on  the  transactions.  The  logging 
camps  and  mills  cannot  be  shut  down  on  ac- 
count of  the  urgent  current  money  require- 
ments. A  bond  loan  prevents  the  necessity  of 
operating  at  a  loss.  It  provides  all  the  neces- 
sary capital  required  to  do  business  in  the 
safest  manner.  It  eliminates  all  floating  debts 
and  short  time  paper.  The  operator  knows  ex- 
actly what  he  must  figure  on  in  the  way  of  in- 

15 


16  TIMBER  BONDS 

terest  charges  and  retirements.  After  arrang- 
ing to  meet  these  every  six  months  he  can  run 
the  business  to  suit  himself. 

The  logging  and  milling  business  is  often  the 
life  of  the  community  in  which  it  exists  and  all 
the  other  enterprises  in  the  neighborhood  are 
dependent  on  it  for  success.  These  others  are 
too  small  to  go  out  of  the  immediate  vicinity 
for  loan  accommodations.  To  do  business  they 
must  be  carried  by  the  local  bank.  The  tim- 
ber company  has  land  to  sell,  by-products  and 
fuel  to  dispose  of.  It  is  deeply  interested  in 
building  up  the  town,  and  should  not,  for  these 
reasons,  use  the  resources  of  the  local  bank.  A 
bond  loan  allows  it  to  avoid  borrowing  from  the 
local  bank. 

Having  a  large  stock  of  lumber  in  the  yard 
ready  for  immediate  shipment  enables  a  com- 
pany very  often  to  get  a  premium  over  the  mar- 
ket price  for  quick  delivery.  It  takes  money  to 
carry  such  a  stock.  A  bond  loan  furnishes  it 
and  permits  the  operator  to  make  bigger  profits. 

In  the  discounting  of  bills  and  accounts  much 
money  can  be  saved  by  a  large  business.  Ample 
working  capital  places  the  operator  in  a  posi- 
tion to  take  advantage  of  lower  cash  prices  and 
cash  discounts.  A  bond  loan  furnishes  the 
necessary  funds  and  the  saving  thus  effected 
goes  a  long  way  toward  paying  the  interest  on 
the  bond  issue. 

The  company  that  is  fully  equipped  with 
working  capital  is  in  a  very  powerful  position 


FUNDED   DEBTS  17 

when  it  comes  to  getting  and  holding  trade.  It 
makes  little  difference  about  the  size  of  its  tim- 
ber holdings  and  milling  capacity  when  it  is 
competing  for  orders.  If  it  is  cramped  for 
funds  it  cannot  hold  its  own  with  the  company 
that  has  smaller  assets  but  more  ready  money. 
A  bond  loan  secured  by  its  land  and  timber  fur- 
nishes all  necessary  cash  requirements. 

It  would  be  possible  to  recite  many  more 
sound  reasons  showing  the  advantage  of  funded 
debts  over  floating  liabilities,  but  those  enumer- 
ated are  sufficient  to  prove  to  the  banker  and 
bond  dealer  the  wisdom  of  the  timber  operator 
who  mortgages  his  property  for  the  necessary 
funds  to  furnish  the  cash  to  handle  his  busi- 
ness with  economy  and  safety. 

The  lumberman  has  gone  over  the  situation, 
reviewed  his  business  thoroughly  and  realizes 
he  must  have  more  money.  Instead  of  being 
able  to  take  advantage  of  the  numerous  ways 
of  making  and  saving,  of  protecting  his  hold- 
ings, of  extending  his  business,  and  caring  for 
his  customers,  he  is  constantly  crowded  by  his 
due  bills,  and  his  affairs  are  at  a  point  where 
something  must  be  done.  He  decides  to  fund 
his  debts. 

The  operator  carrying  a  large  investment  in 
plants  and  stumpage,  loaded  with  floating  debts 
and  facing  the  necessity  of  further  heavy  cash 
expenditure  for  improvements,  extensions  and 
purchase  of  timber,  out  of  which  he  can  draw 
no  immediate  return,  has  decided  to  fund  his 


18  TIMBER  BONDS 

present  liabilities,  and  borrow  the  money  neces- 
sary for  his  needs  in  the  form  of  a  bond  issue, 
maturing  over  a  period  of  years,  and  secured 
by  a  first  mortgage  and  prior  lien,  on  all  his 
holdings  now  owned  or  to  be  acquired. 

In  order  to  negotiate  this  loan  and  get  a  fair 
price  for  his  bonds,  the  enterprise  must  be  well 
founded  and  sound.  The  property  must  be 
favorably  located,  the  shipping  facilities  ample, 
the  market  for  the  product  not  restricted,  the 
plants  modern  and  economical  producers,  the 
timber  of  good  quality,  the  cost  of  logging  and 
mining  not  excessive,  the  selling  department 
well  organized  and  effective.  Every  branch  of 
the  business  must  be  able  to  stand  the  closest 
scrutiny  of  the  experts  that  the  bond  under- 
writer or  the  banker  will  send  on  the  property 
to  make  investigations. 


CHAPTER  IV. 

THE  UNDEEWEITEB. 

The  difference  between  timber  bonds  and  in- 
dustrial bonds  has  not  always  been  realized  by 
those  issuing  timber  securities.  Again  tim- 
ber bonds  have  been  brought  out  by  some  houses 
in  the  same  manner  in  which  they  would  issue 
real  estate  or  land  bonds.  The  errors  have  re- 
sulted in  some  defaults.  Such  houses  are  re- 
sponsible for  the  prevailing  notion  that  only 
the  bond  dealer  who  specializes  in  timber  secur- 
ities can  handle  them  with  perfect  safety. 

This  idea  hurt  timber  bonds  and  narrowed 
their  market.  It  founded  the  feeling  amongst 
many  bankers  and  bond  dealers  that  timber 
bonds  were  good  things  to  avoid.  These  men 
did  not  have  the  time  to  study  timber  and  allied 
industries  and  they  invested  their  funds  in 
paper  they  understood  or  could  easily  learn  all 
about  from  a  reliable  source. 

The  prejudice  thus  created  also  hurt  the  tim- 
ber owner  and  forced  him  to  put  up  security  out 
of  proportion  to  the  money  loaned  him.  It 
caused  him  to  pay  heavy  sinking  funds  and  high 
interest  rates,  and  to  sell  his  bonds  at  a  big 
discount.  The  inherent  value  of  the  timber 
bond  alone  saved  it  from  being  driven  out  of 
existence  by  the  ignorance  and  greed  of  * '  Tim- 
ber Experts"  and  other  interested  parties.  The 

19 


20  TIMBER  BONDS 

timber  cruising  firms  knew  nothing  about  bonds 
and  they  were  very  jealous  of  their  knowledge 
of  timber.  The  bond  dealers  and  bankers  found 
it  next  to  impossible  to  get  the  real  facts  and 
give  themselves  and  the  timberman  a  fair  deal. 
The  result  was  that  the  timberman  usually  suf- 
fered through  the  unwillingness  of  the  timber 
expert  to  advise  the  banker  fully  on  the  tech- 
nical questions  regarding  stumpage. 

The  first  timber  bond  was  written  about  ten 
years  ago  and  the  situation  explained  above 
continued  for  several  years.  Then  the  most  re- 
liable timber  bond  dealers  commenced  organiz- 
ing their  own  force  of  experts  and  some  wealthy 
lumber  operators  also  entered  the  timber  bond 
business.  This  partially  relieved  the  situation, 
which  was  further  helped  by  the  rise  of  a  few 
very  expert  cruising  firms  who  adopted  the 
broad  policj^  of  fully  advising  the  bond  buyers 
on  every  phase  of  stumpage  values  and  logging. 
These  cruisers,  however,  are  not  familiar  with 
commercial  life,  as  they  are  professional  woods- 
men. Neither  do  they  understand  the  creation 
of  a  bond  issue.  Thus,  the  average  bond  house 
and  banker  was  unable  to  get  satisfactory  ad- 
vice on  timber  bonds  until  some  two  years  ago. 
About  that  time  a  couple  of  men  who  thor- 
oughly understand  stumpage,  timber  values  and 
the  lumber  business,  and  who  are  experts  in 
industrial  bonds,  entered  the  field  as  underwrit- 
ers. Their  policy  is  to  analyze  and  report  on 
issues  through  every  phase  of  their  creation. 


THE  UNDERWRITER  21 

for  any  person  who  wants  the  information. 
Their  business  is  underwriting  whole  issues  for 
timbermen  and  placing  them  with  banks  and 
bond  dealers.  These  men  supply  the  long  felt 
want.  That  buyers  appreciate  their  services  is 
attested  by  the  fact  that  millions  of  dollars 
worth  of  bonds  have  passed  through  their 
hands  in  the  short  time  they  have  been  operat- 
ing. 

When  the  timberman  decides  to  float  a  bond 
issue  on  his  holdings,  he  goes  to  these  under- 
writers or  some  bond  house  or  banker  to  nego- 
tiate his  loan.  If  he  places  it  in  the  hands  of 
the  underwriters  their  first  move  will  be  to 
make  a  close  survey  of  the  entire  project  before 
calling  for  the  investigations  of  auditors,  cruis- 
ers and  attornevs. 


CHAPTER  V. 

EEVIEW    OF    BUSINESS. 

All  the  expenses  incident  to  a  bond  issue  must 
be  borne  by  the  timberman.  These  expenses 
consist  of  an  audit  of  the  books,  a  cruise  of  the 
timber,  the  legal  charges  for  examining  titles, 
drawing  the  trust  deed,  drafting  the  text  of  the 
bond,  the  charges  of  the  trustee,  the  cost  of  cer- 
tifying the  bonds,  the  cost  of  printing  the  mort- 
gage, lithographing  the  bonds  and  incidental  ex- 
penditures. Should  the  bond  issue  fail  through 
some  fault  or  mistake  of  the  timberman,  it 
would  be  very  costly  to  him. 

Every  precaution  should  be  taken  to  elimi- 
nate the  risk  of  failure  before  incurring  the 
outlay  for  expensive  investigations.  The  busi- 
ness should  be  reviewed  to  ascertain  if  the  loan 
is  feasible  on  the  basis  of  the  statements  and 
data  furnished  by  the  timberman.  This  review 
should  cover  the  financial,  industrial  and  stump- 
age  operations.  The  prospective  borrower  can 
furnish  a  statement  of  assets  and  liabilities 
as  taken  from  his  books.  A  statement  showing 
the  volume  of  operations  with  the  disburse- 
ments and  receipts  incident  thereto.  Each  de- 
partment should  be  shown  in  detail.  A  cruise 
of  the  timber,  giving  its  kind  and  quality  and 
if  long  leaf  pine,  stating  whether  it  is  round  or 
bled,  a  description  of  the  various  equipment 

S2 


REVIEW  OF  BUSINESS  2S 

and  plants.  An  examination  of  these  state- 
ments will  enable  the  analyst  to  judge  with 
fair  accuracy  if  the  loan  can  be  negotiated.  If 
so,  he  should  get  on  the  ground  and  examine 
the  property  to  see  the  kind  of  timber,  and  the 
nature  of  equipment  used  in  getting  it  out,  to 
judge  the  efficiency  and  value  of  the  mills,  to 
note  the  manner  of  accounting,  and  to  see  the 
method  of  handling  sales.  In  this  way  he  takes 
a  mental  photograph  of  the  entire  business  and 
can  tell  almost  exactly  what  the  timberman  can 
borrow  if  the  information  is  approximately 
verified  by  the  expert  investigations  to  follow. 

Standing  and  living  timber  is  the  life  of  a 
timber  bond.  The  heft  of  the  security  for  the 
loan  must  be  green  and  growing  stumpage.  A 
small  proportion  of  over  mature  trees  may  be 
allowed.  No  loan  should  be  made  on  timber 
consisting  mainly  of  over-ripe  trees.  Down  tim- 
ber should  not  be  considered  unless  it  is  easily 
accessible.  Dead  timber  still  standing  should 
be  cruised.  Fire  killed  timber  should  be  cruised. 
The  timber  should  be  on  land  owned  in  fee 
simple.  Twenty  five  per  cent  of  stumpage  con- 
tracts mav  be  allowed  if  the  life  of  the  contracts 
or  the  time  granted  for  removal  of  timber  is 
longer  than  the  life  of  the  bonds.  Bonds  should 
not  be  written  when  secured  by  timber  standing 
in  a  county  where  taxes  on  timber  land  are  ex- 
cessive. 

The  ground  should  be  fairly  good  for  log- 
ging.   If  very  hilly  or  rough  the  breakage  in 


24  TIMBER  BONDS 

falling  is  liable  to  be  excessive.  It  should  be 
a  good  logging  chance.  The  breakage  must  be 
deducted  from  the  stumpage  yield  and  the  loan 
value  figured  on  the  estimated  feetage  less  the 
estimated  breakage  for  the  entire  tract.  In  red- 
wood and  other  very  large  timber,  the  breakage 
is  heavy. 

In  the  South,  where  long  leaf  pine  is  bled  for 
turpentine,  either  by  boxing  or  cupping,  care 
must  be  exercised  in  making  valuations.  Round 
timber  is  the  tree  before  being  boxed  or  cupped 
for  working.  Boxed  timber  is  the  tree  that  is 
now  or  has  been  boxed  or  cupped  for  working. 
The  cup  system  is  easier  on  the  tree  and  more 
modern  than  the  box.  Round  timber  is  worth 
more  than  boxed  or  bled  timber  and  in  bled 
timber  the  tree  that  is  cupped  is  more  valuable 
than  the  tree  that  is  boxed.  The  value  of  bled 
timber  depends  entirely  on  the  condition  of  the 
particular  tract  as  shown  by  the  detailed  cruise. 

The  logging  equipment  must  be  modern,  in 
good  condition,  ample  to  get  out  timber  fast 
enough  to  protect  interest  and  retirements  on 
the  loan.  The  cost  of  logging  should  not  be 
too  far  above  the  average  for  its  particular 
locality.  If  the  cost  of  logging  is  under  the 
local  average,  it  speaks  highly  for  the  enter- 
prise. 

The  logging  railway  should  be  well  built, 
fully  equipped  to  handle  the  output  and  oper- 
ated with  economy.  The  kind  of  locomotives 
used  will  depend  on  the  grades.    Where  geared 


REVIEW  OF  BUSINESS  26 

engines  are  necessary  the  rolling  stock  should 
be  equipped  with  air  brakes.  In  fact  all  rolling 
stock,  whether  operated  with  geared  or  direct 
engines,  should  be  fitted  with  air.  One  runaway 
would  more  than  pay  the  cost  of  such  equip- 
ment. 

The  mill  should  be  in  good  repair.  "Whether 
band  or  circular  it  must  be  economical  of  its 
kind.  Bonds  should  not  be  written  on  mills  that 
butcher  timber.  Such  sawing  shows  indifferent 
and  improvident  management  and  eats  into  the 
security.  Timber  slaughtering  mills  are  quickly 
killed  off  when  competing  plants  go  after  their 
trade.  The  capacity  of  the  mill  should  be  suffi- 
cient to  cut  enough  lumber  to  care  for  the  in- 
terest and  retirements  on  the  loan.  There 
should  be  ample  water  supply  at  the  mill  and 
sufficient  hydrants  and  hose  to  handle  any  fire. 
The  pumps  should  be  good,  the  hose  sound  and 
easily  accessible.  If  possible  a  sprinkler  sys- 
tem should  be  used.  The  refuse  burner  should 
be  covered  with  spark  arrestor  and  placed  as 
far  from  the  mill  as  possible. 

The  Sales  department  must  be  well  organ- 
ized. The  market  is  vital  to  the  income  and 
the  books  must  show  a  clean  record  on  this 
point.  Also  the  Accounting  and  Collecting  de- 
partments must  be  effective,  and  the  business 
in  good  credit.  The  shipping  facilities  must 
be  good.  The  plant  must  be  on  a  railroad  that 
enables  the  lumber  to  reach  a  ready  market. 
Plants  located  on  more  than  one  road  are  verv 


28  TIMBER  BONDS 

desirable.  Plants  located  so  they  can  ship  by 
rail  and  water  are  the  choicest  risks.  Plants 
located  on  a  line  that  suffers  from  chronic  car 
shortage  should  be  avoided.  Plants  located  on 
a  line  that  is  short  on  motive  power  should  be 
avoided.  Each  lumbering  enterprise  has  its  in- 
dividual points  that  must  be  scrutinized  and 
these  features  will  be  brought  out  in  the  expert 
reports  of  auditors,  cruisers  and  attorneys. 


CHAPTER  VI. 

AUDIT  OF  BOOKS. 

Many  people  confuse  tlie  auditor  with  a  book- 
keeper or  office  accountant.  This  is  a  great 
mistake.  The  expert  auditor  or  certified  public 
accountant  is  one  of  the  most  higlily  trained 
and  technical  professional  men  of  the  present 
day.  He  is  in  the  same  rank  with  the  consult- 
ing civil  engineer  and  the  expert  investment 
analyst.  He  is  educated  deeply  in  his  special 
work  and  taught  to  go  to  the  very  heart  of  con- 
ditions in  the  most  direct  and  thorough  man- 
ner. Nothing  escapes  his  trained  and  vigilant 
scrutiny.  The  cruiser  estimates  the  timber  sup- 
ply and  future  possibilities.  The  auditor  writes 
the  history  of  the  business.  The  auditor  does 
not  care  particularly  for  glowing  prospects ;  he 
wants  accomplished  facts.  The  auditor  brings 
together  every  branch  of  the  business  in  a  clear 
and  concise  form.  He  shows  receipts  and  dis- 
bursements, earnings  and  outlays,  profits  and 
losses,  assets  and  liabilities  as  they  actually 
exist. 

Up  to  the  present  time  investment  buyers  of 
timber  bonds  are  furnished  only  with  the  bal- 
ance sheet  appearing  in  the  circulars  of  the 
house  selling  the  securities.  These  buyers 
should  be  provided  with  an  annual  statement  of 
the  affairs  of  the  company  whose  bonds  they 

27 


28  TIMBER  BONDS 

own.  This  statement  should  be  made  up  by 
responsible  Public  Accountants  who  are  fa- 
miliar with  lumber  operations  and  accustomed 
to  audit  for  bond  issues. 

The  mortgage  protects  the  banker  and  bond 
dealer  by  permitting  them  to  enter  on  the  prop- 
erty and  make  investigations  and  audits  at  any 
time.  This  is  in  the  nature  of  insurance.  11^ 
prevents  the  property  from  being  skinned  and 
forbids  fraudulent  operations  by  dishonest  peo- 
ple. The  timber  industry  is  composed  of  ex- 
ceedingly high  class  men  and  these  investiga- 
tions are  not  often  made.  Comprehensive  re- 
ports, made  by  Independent  experts,  and  fur- 
nished regularly,  would  increase  the  desire  for 
timber  bonds,  by  giving  the  public  who  now 
hesitate  to  buy  on  account  of  lack  of  knowledge 
of  timber  operations,  confidence  in  them.  These 
reports  would  tend  to  put  timber  bonds  in  a 
very  desirable  class  and  greatly  broaden  their 
market. 

Eecently  I  had  occasion  to  ask  a  bond  dealer 
for  the  latest  balance  sheet  of  a  lumber  com- 
pany for  whom  he  had  sold  an  issue  of  bonds. 
The  bonds  were  disposed  of  more  than  two 
years  ago  and  he  has  not  since  had  their  affairs 
inspected.  The  only  information  he  could  give 
was  from  the  original  audit.  This  attitude  is 
wrong  and  dangerous.  The  day  will  soon  be 
here  when  buyers  of  timber  bonds  will  insist 
on  annual  reports.    They  are  entitled  to  them 


AUDIT  OP  BOOKS  «» 

and  bond  dealers  should  see  that  they  are  fur- 
nished without  request. 

Tlie  particular  audit  on  the  books  and  ac- 
counts of  an  operation  for  the  purpose  of  learn- 
ing if  the  operator  is  entitled  to  a  bond  loan  is 
made  to  determine  the  assets,  the  liabilities  and 
the  profits.  This  examination  will  show  the 
purchase  price  of  timber  land,  equipment  and 
mills.  It  will  show  the  figure  they  are  being 
carried  for  on  the  books  at  present.  The  audit 
will  exhibit  every  detail  of  manufacturing  cost, 
taxes,  interest,  insurance  and  overhead  charges. 
Many  operators  think  they  are  making  a  profit 
when  in  reality  they  are  running  at  a  loss. 
These  men  omit  charging  up  the  cost  of  stump- 
age,  the  interest  on  the  investment,  the  taxes 
or  the  money  tliej^  loan  the  business  from  time 
to  time.  When  operating  without  a  bond  issue 
it  may  be  well  enough  to  overlook  interest,  but 
with  a  bond  issue  it  is  the  most  insistent  and 
imperative  item  to  handle. 

The  audit  will  show  the  collections  and  weed 
out  the  bad  accounts.  The  audit  will  prove  the 
exact  cost  of  lumber  on  cars,  the  volume  of 
sales,  the  actual  selling  price  and  the  percent- 
age to  be  written  off  for  bad  debts.  With  this 
data  before  him  the  analyst  can  figure  with  a 
good  degree  of  accuracy  how  large  a  loan  it 
is  safe  to  make  on  the  enterprise.  The  auditor 
should  go  back  over  the  books  and  get  the  oper- 
ations for  five  years  and  compare  each  year.  If 
the  books  are  not  so  old  he  should  go  back  as 


80  TIMBER  BONDS 

far  as  possible.  The  comparative  figures  for  a 
number  of  years  will  show  if  the  business  has 
been  progressing  or  retrograding.  The  audit 
should  be  made  by  accountants  who  understand 
what  is  wanted  for  a  bond  loan  investigation. 


CHAPTER  VII. 

EXAMINATION   OF   PROPERTY. 

The  timber  is  estimated  either  by  public 
cruisers  or  the  private  cruisers  of  the  bond 
buyers  or  the  underwriters.  The  following  de- 
scription of  examining  a  timber  property  for 
the  purpose  of  a  bond  issue  is  taken  from  the 
booklet  issued  by  Messrs.  Clark  L.  Poole  & 
Company,  Chicago.  This  house  has  sold  around 
$40,000,000.00  worth  of  timber  bonds.  They 
have  never  had  a  default  of  interest  or  prin- 
cipal : 

""Wlien  a  lumber  company  desires  to  make 
a  bond  issue  based  on  its  timber  lands  and 
sawmill  plant  as  security,  we  require  of  it  a 
general  statement  showing  the  valuation  of  the 
property,  the  number  of  acres  of  timber  land, 
varieties  of  timber,  the  estimated  amount  of 
lumber  it  will  produce  and  other  information  of 
a  general  nature,  including  the  amount  and  pur- 
pose of  the  bond  issue  desired.  If  the  security 
seems  ample  to  make  such  bond  issue  safe  and 
investigation  into  the  credit  and  standing  of 
the  company  is  satisfactory,  we  agree  to  accept 
the  bond  issue  if  our  own  independent  prelimin- 
ary investigation  results  in  bearing  out  the 
statement  furnished  by  the  company  that  has 
made  application  for  the  bond  issue. 

'*At  this  point  the  real  work  of  making  the 

31 


32  TIMBER  BONDS 

bond  issue  begins.  We  have  in  constant  em- 
ploy W.  E.  Straight,  of  Chicago,  formerly  of 
Michigan,  who  is  a  timber  cruiser  of  high  repu- 
tation, and  over  30  years'  active  experience  in 
estimating  all  varieties  of  timber.  A  timber 
cruiser's  business  is  to  go  into  the  woods  and 
make  an  estimate  of  the  amount  of  lumber  the 
trees  will  cut,  which  is  given  to  the  owner  in 
written  reports.  As  the  owner  manufactures 
the  trees  into  lumber,  he  compares  the  actual 
amount  of  lumber  that  is  manufactured  with 
the  estimate  of  the  cruiser.  If  the  reality  con- 
forms with  the  estimate,  the  cruiser  has  demon- 
strated his  ability  for  accuracy,  as  Mr.  Straight 
has  done  for  many  years  for  several  of  the  larg- 
est lumber  interests  of  Michigan  and  elsewhere. 
''Some  morning  a  modest  appearing  man 
calls  on  the  lumber  company  which  has  nego- 
tiated for  a  bond  issue.  He  asks  for  the  com- 
plete plats  of  the  timber  holdings.  Mr.  Straight 
has  begun  his  investigation,  and  is  preparing  to 
make  his  preliminary  survey.  After  getting  in 
his  mind  a  picture  of  the  extent  of  the  timber 
holdings  as  to  acreage  and  boundaries,  he  is 
ready  to  make  a  start  into  the  woods.  Accom- 
panied by  the  logging  superintendent  or  some- 
one who  is  familiar  with  the  holdings,  he  travels 
the  woods  until  he  has  seen  every  part  of  them. 
He  goes  from  one  end  to  the  other  and  criss- 
cross, his  work  being  what  is  known  as  a  cruis- 
er's running  estimate.  He  discovers  the  gen- 
eral run  of  the  poorest  and  best  timber,  the 


EXAMINATION  OP  PROPERTY  33 

character  of  the  land  and  its  adaptability  for 
agricultural  uses  after  the  timber  is  cut, 
whether  there  are  many  lakes,  streams  and 
marshes ;  whether  it  is  an  easy  or  a  difficult  lum- 
bering proposition;  character  of  the  logging 
railroads,  whether  it  would  be  expensive  to  con- 
struct them,  or  whether  it  could  be  done  at  a 
comparatively  reasonable  cost;  whether  the 
timber  is  scattered  or  is  well  bunched ;  whether 
the  streams  are  practical  for  floating  the  logs; 
whether  the  mill  is  so  located  that  it  can  be  sup- 
plied with  logs  at  a  small  cost;  as  well  as  many 
other  items  of  information  that  are  practical  in 
connection  with  the  economical  operation  of  a 
lumber  manufacturing  plant. 

"Having  finished  his  examination  of  the 
woods,  Mr.  Straight  has  still  other  work  to 
do.  He  makes  a  careful  examination  of  the 
sawmill  plant  to  ascertain  its  physical  condi- 
tion. It  may  not  be  constructed  so  as  to  do  the 
amount  of  work  a  mill  of  that  class  should  be 
expected  to  do.  He  also  notes  whether  care  is 
taken  to  minimize  danger  from  fire  by  prevent- 
ing the  accumulation  of  refuse,  and  whether 
there  are  ample  precautionary  measures  in  the 
way  of  fire  protection  and  preventatives  to  en- 
able the  employes  to  extinguish  a  blaze  at  its 
beginning.  His  examination  also  goes  into  the 
care  taken  of  the  equipment  of  the  plant,  the 
arrangement  with  reference  to  handling  the 
output  of  the  mill  with  small  expense,  the  loca- 
tion of  the  plant  with  reference  to  reaching  the 


34  TIMBER  BONDS 

market,  the  situation  as  to  probability  of  a 
meagre  or  plentiful  car  supply,  the  ability  of 
the  management,  character  of  the  office  force 
and  a  survey  of  the  business  generally.  When 
Mr.  Straight  makes  his  report,  if  the  security 
looks  good  and  other  elements  are  satisfactory, 
we  enter  into  an  agreement  to  take  the  bond 
issue  if  detailed  estimates,  to  be  made,  show 
that  there  is  sufficient  timber  to  be  good  secur- 
ity for  the  loan. 

Every  timber  land  bond  issue  handled  by  us 
must  conform  to  the  following  high  standard 
of  security: 

1.  The  Company  issuing  the  bonds  must  be 
well  established;  in  high  credit,  its  officers  and 
managers  must  be  thoroughly  experienced  and 
in  good  standing  among  lumbermen. 

2.  The  lands  must  be  well  located;  contain 
timber  of  good  quality;  the  amount  thereof  to 
be  in  every  case  determined  by  capable,  well- 
known  timber  estimators,  emploj^ed  by  us  to 
cruise  the  timber,  which  in  every  case  must 
have  a  cash  market  value  of  at  least  50  per 
cent  in  excess  of  the  bond  issue. 

3.  The  titles  to  the  lands  must  be  carefully 
examined  and  approved  by  our  own  legal  coun- 
sel. 

4.  The  mortgage  securing  the  bonds  must 
contain  strict  provisions  which  operate  to  in- 
sure the  regular  deposit  of  an  agreed  amount 
per  thousand  feet  for  all  timber  cut  sufficient 
to  retire  all  of  the  bonds  when  about  one-half 


EXAMINATION  OF  PROPERTY  35 

of  the  timber  is  consumed;  these  deposits  to 
be  applied  to  the  payment  of  the  principal  of 
the  bonds  as  the  several  serijJs,  semi-annually 
or  annually,  become  due.  The  mortgage  makes 
provision  for  keeping  careful  check  upon  the 
cutting  of  timl)er  and  accounting  for  the  same 
to  the  mortgage  trustee. 

Organizing  the  timber  estimating  crews  is 
the  second  stage  in  the  making  of  a  timber  land 
bond  issue.  It  is  left  to  the  cruiser  in  charge 
and  the  bond  house.  Each  crew  consists  of  two 
men,  an  estimator  and  a  compass  man.  The 
number  of  crews  depends  on  the  acreage  of  the 
timber  holdings  and  the  rapidity  with  which  it 
is  desired  to  have  the  estimate  completed.  In 
the  case  of  a  recent  bond  issue  made  by  us  on 
Southern  timber  lands,  there  were  124,000  acres 
of  pine  and  cypress  timber  to  be  examined  in 
a  period  of  six  months.  Seven  crews  were  put 
out  into  the  tield,  making  a  total  of  14  men  em- 
ployed besides  Mr.  Straight.  These  men  have 
estimated  timber  for  the  Chicago  &  Northwest- 
ern Railroad  Company,  the  Duluth  &  South 
Shore  Railroad  Company,  Longyear  Land 
Company,  Marquette,  Michigan,  Cleveland 
Cliff  Iron  Company,  Negaunee,  Michigan,  and 
many  others. 

An  example  of  the  method  of  work  done  in 
all  bond  issues  handled  is  the  work  on  a  recent 
bond  issue.  As  the  surveys  were  not  in  good 
condition,  the  lines  not  being  plain,  the  serv- 
ices of  a  county  surveyor  were  secured.    He 


36  TIMBER  BONDS 

went  to  the  U.  S.  Government  Land  Office  and 
obtained  the  field  notes,  from  which  he  ran  his 
base  lines,  consisting  of  north  and  south  sur- 
veys on  range  lines,  and  east  and  west  surveys 
on  township  lines,  establishing  from  these  gov- 
ernment field  notes  all  government  corners  and 
quarter  posts  besides  establishing  all  eighth 
posts.  A  sworn  copy  of  his  survey  is  on  file 
with  us.  The  bases  were  run  for  the  purpose 
of  giving  the  timber  cruisers  base  lines  and 
corners  to  work  from,  so  they  could  prove  up 
their  work  on  each  and  every  section  or  frac- 
tion thereof,  as  will  be  seen  later.  All  cruis- 
ing work  is  done  on  these  lines.  Where  corners 
are  not  perfectly  plain,  a  competent  surveyor 
is  always  employed  to  establish  such  points 
from  government  field  notes,  for  although 
cruisers  of  ability  understand  how  to  find  cor- 
ners, they  take  no  chances,  preferring  to  have 
them  established  by  competent  surveyors,  so 
there  will  be  no  question  of  accuracy.  A  cruiser 
will  not  begin  an  estimate  until  the  corners 
are  established. 

"All  corners  having  been  established,  Mr. 
Straight  assigned  the  crews  to  work.  They 
were  started  at  different  points  and  worked 
to  a  common  center  with  the  intention  to  have 
all  the  crews  meet  about  the  same  time.  Each 
crew  is  furnished  with  plats  of  the  different 
portions  of  the  land  allotted  to  it,  the  descrip- 
tions all  being  checked  from  the  original  deeds 
to  the  property.    Not  less  than  two  crews  work 


EXAMINATION  OF  PROPERTY  37 

together  from  one  camp  for  the  reason  that  if 
any  difficulties  arise  in  the  work  of  either,  they 
can  settle  them.  The  camp  equipment  is  packed 
in  a  wagon,  teams  being  kept  to  move  the  out- 
fits of  the  crews.  When  it  is  impossible  to  use 
teams  the  men  pack  the  outfit  on  their  backs. 
A  camp  will  be  occupied  on  an  average  of  about 
ten  days;  and  the  crews  will  cover  from  10  to 
18  sections  of  land  from  one  camp,  depending 
on  the  character  of  the  country. 

''Each  crew  covers  on  foot  the  several  por- 
tions of  the  woods  assigned  to  it.  The  crew 
starts  at  some  point  on  the  base  given  by  the 
surveyor  and  continues  to  do  its  work,  keeping 
an  accurate  check  on  its  base  as  the  work  pro- 
ceeds. The  method  used  is  known  as  'horse- 
shoeing a  40,'  and  is  the  one  most  commonly 
used  by  Mr.  Straight,  as  it  enables  the  cruiser 
to  see  every  portion  of  the  land.  If  the  start 
is  made  at  the  southeast  corner  of  a  section, 
the  cruiser  will  say  to  his  compassman:  'Go  to 
tally  1  north.'  When  the  compassman  who 
runs  all  the  lines  has  gone  north  125  paces,  or 
about  375  feet,  he  calls  out:  'tally  1  north,' 
and  stops  until  he  is  directed  to  move.  This 
gives  one  side  of  a  ten  acre  tract.  The  cruiser 
has  begun  to  work  toward  the  compassman  and 
counts  and  estimates  each  and  every  tree  for  a 
distance  of  25  paces  on  each  side  of  his  base 
line,  making  50  paces  in  all.  At  first  he  meas- 
ures the  trees  with  a  tape  to  verify  his  eye 
judgment  of  the  circumference  and  measures 

51156 


38  TIMBER  BONDS 

windfalls  for  length  to  verify  his  eye  judg- 
ment as  to  the  height  of  trees.  If  his  eye  judg- 
ment has  been  at  fault,  he  keeps  measuring  un- 
til his  eye  judgment  becomes  accurate,  then  he 
trusts  solely  to  his  eye.  He  keeps  tally  of  each 
tree  and  at  the  close  of  the  day  figures  out  his 
totals  by  an  established  mathematical  rule. 

''Having  come  near  enough  to  his  compass- 
man,  he  directs  him  to  tally  1  west,  and  the 
compassman  proceeds  to  pace  125  paces  to  the 
next  tally  point,  and  when  he  arrives  makes  it 
known  and  waits.  He  has  now  two  sides  of 
the  10  acre  tract,  and  before  he  leaves,  es- 
tablishes the  center. 

''The  cruiser  has  thus  been  estimating  the 
trees  25  paces  on  each  side  of  the  boundary  to 
two  ten-acre  tracts,  a  ten-acre  tract  being  about 
the  dimensions  of  a  city  square.  The  other 
boundary  is  only  about  300  feet  away,  so  he 
can  easily  see  whether  there  is  any  change  in 
the  character  of  the  timber.  If  there  is,  he 
makes  a  closer  examination  and  records  it. 

"The  cruiser  and  his  compassman  are  never 
more  than  60  to  125  paces  apart.  They  pro- 
ceed in  this  way  three  talleys  west  and  then 
two  north,  then  three  east,  which  brings  them 
back  to  the  base  line,  then  they  go  two  north, 
three  west,  two  north,  three  east,  which  brings 
them  back  to  the  base  line,  then  one  north  which 
ought  to  bring  them  to  the  quarter  post  at  the 
half  section  line ;  if  it  does  not,  they  find  it  and 
correct  the  estimate.    The  compassman  devotes 


EXAMINATION   OF   PROPERTY  39 

his  entire  time  to  running  tally  lines  under  di- 
rection of  the  cruiser  and  never  leaves  a  sec- 
tion without  checking  up  with  the  government 
quarter  posts  and  section  corners  to  prove 
whether  his  pacing  work  is  accurate  and  correct. 

If  there  should  be  at  any  time  a  difference 
in  an  overrun  or  shortage  in  coming  out  to  the 
section  lines  or  corners,  the  cruiser  proceeds 
to  correct  up  his  estimate  by  taking  off  or  add- 
ing such  difference,  if  it  can  be  done ;  if  it  can- 
not, the  entire  section  or  description  is  re-esti- 
mated. In  no  instance  does  the  cruiser  ever 
take  chances  at  guess  work.  He  has  positive 
instructions  never  to  leave  a  section  or  de- 
scription of  land  until  he  is  fully  satisfied  that 
his  estimates  are  accurate  and  correct. 

''The  estimator  is  given  no  instructions  re- 
garding the  amount  of  land  he  is  to  estimate 
each  day;  that  is  left  entirely  to  his  judgment 
as  he  finds  the  situation.  "When  the  estimator 
has  finished  his  work  on  a  section  of  land  by 
using  the  method  of  horse-shoeing  as  explained, 
supplemented  with  stripping,  which  is  actually 
taking  the  dimensions  as  nearly  as  possible  by 
the  eye,  the  estimator  has  an  accurate  tally  of 
each  tree  on  eight  acres  of  each  40  acres  with 
its  length  and  other  dimensions.  In  his  hand 
he  has  held  a  card  on  which  he  has  kept  a  tally. 
He  also  carries  a  field  book  in  which  he  notes 
the  topography  of  the  land,  the  location  of 
marshes,  lakes,  streams,  wagon  roads,  logging- 
railroads  and  everything  that  comes  within  his 


40  TIMBER  BONDS 

observation,  together  with  notations  as  to  the 
surface  of  the  ground,  general  logging  chance, 
character  of  soil,  etc.  At  night  he  makes  out 
from  his  field  book  an  accurate  plat,  or  timber 
estimate  and  field  report  sheet,  one  for  each 
section  of  land  estimated. 

''One  of  these  plats  shows  a  square  mile  of 
the  timber  owned  by  a  large  Southern  Lumber 
Co.,  which  is  estimated  to  cut  4,765,000  feet  of 
lumber  from  logs  15  inches  in  diameter  and  up- 
wards, and  1,033,000  feet  from  logs  8  inches  to 
15  inches  in  diameter,  also  46,000  feet  of  dead 
timber,  all  of  yellow  pine ;  38,000  feet  of  cypress 
lumber,  30  cypress  poles,  385  ties,  2,000  feet  of 
gum,  14,000  feet  of  palmetto  and  3,000  feet  of 
swamp  oak.  The  estimator  in  his  report  says : 
'Pine  large  and  of  good  quality,  not  boxed; 
some  sapling  pine ;  surface  slightly  rolling  with 
a  considerable  slope  to  the  south;  soil  light, 
sandy  loam,  good  farming  land ;  pine  573  acres, 
waste  67  acres,  total  640  acres.'  The  estimator 
signs  each  plat,  which  is  given  to  Mr.  Straight, 
who  sends  it  to  us  by  registered  mail  or  ex- 
press, first  making  a  copy  which  he  delivers  to 
the  party  making  the  bond  issue.  These  plats 
are  useful  after  the  bond  issue  has  been  made. 

"In  the  meantime,  Mr.  Straight  is  not  idle. 
He  carries  his  bedding,  his  baggage,  and  feed 
for  his  horse,  ready  to  camp  and  sleep  where 
night  overtakes  him,  if  he  does  not  strike  the 
camp  of  one  of  his  crews.  He  is  accompanied 
by  a  compassman  and  'horse-shoes'  and  'strips,' 


EXAMINATION  OF  PROPERTY  41 

checking  up  the  work  of  his  crews  on  foot,  using 
the  same  methods  they  have  used.  If  there  are 
any  differences,  the  work  is  gone  over  and  cor- 
rections made.  Mr.  Straight  is  in  the  woods 
all  the  time,  going  from  camp  to  camp,  and  his 
men  never  know  when  to  expect  his  coming. 
Wlien  the  work  of  estimating  all  the  timber  has 
been  completed,  a  valuation  is  placed  upon  the 
holdings,  sawmill,  railroad,  equipment  and  other 
property  to  be  pledged  for  the  bonded  indebted- 
ness, which  completes  the  preliminary  stage 
of  making  the  bond  issue. 

''Thus  far  all  the  work  that  has  been  done 
was  for  the  purpose  of  determining  whether 
there  was  property  which  would  be  security,  its 
value  and  its  location.  These  elements  having 
been  positively  demonstrated,  the  next  step  is 
to  discover  whether  the  party  desiring  the 
bond  issue  has  a  good  title  to  the  property,  and 
has  the  right  and  power  to  pledge  it  as  security 
and  that  there  are  no  liens  upon  it.  This  is  the 
work  of  the  lawyer,  who  must  be  one  of  high 
standing,  familiar  with  bond  issues  and  whose 
opinion  is  accepted  without  question  in  financial 
circles.  After  he  is  satisfied  that  the  company 
owns  the  title  to  all  the  lands  in  fee  simple  and 
the  details  of  its  incorporation  have  fulfilled  all 
the  requirements  of  the  law  and  that  it  has  the 
legal  right  to  own  the  property  and  to  pledge 
it  as  security,  the  lawyer  is  ready  to  draw  the 
trust  deed  and  mortgage  which  conveys  the 
timber  holdings  to  a  trustee  as  a  pledge  for  the 


42  TIMBER  BONDS 

bonds.  The  trustee  must  be  a  trust  company  of 
large  capital  and  resources,  whose  officers  are- 
recognized  as  competent  and  trustworthy,  for 
the  trustee  has  important  duties  to  perform 
which  extend  over  a  term  of  years  until  all  of 
the  bonds  have  been  paid  and  the  terms  of  the 
trust  deed  fulfilled,  when  the  trust  company's 
duty  is  to  make  a  reconveyance  of  the  property 
to  the  owner. 

"Every  possible  safeguard  that  can  be 
thought  of  by  astute  lawyers  is  thrown  about 
these  timber  bond  issues.  There  are  20  pro- 
visions in  the  form  of  trust  deed,  each  one  of 
which  requires  some  duty  of  the  maker  of  the 
bond  issue.  Some  of  them  are:  punctual  pay- 
ment of  principal  and  interest  when  due;  con- 
ditions under  which  lumber  shall  be  manufac- 
tured, including  sinking  fund  provision  for  pay- 
ment of  certain  amount  per  1,000  feet  of  timber 
cut,  to  the  trustee ;  fire  insurance  on  all  build- 
ings and  machinery;  payment  of  taxes  and 
liens;  issuing  and  delivery  of  bonds;  registra- 
tion of  bonds  in  name  of  owner,  if  desired; 
statements  in  writing  of  condition  of  property 
to  be  furnished  and  provisions  giving  the  trus- 
tee access  to  books  and  vouchers  for  the  pur- 
pose of  verifying  statements ;  and  penalties  for 
default  in  agreements. 

"Timber  land  bond  issues  are  so  made  that 
the  bonds  mature  serially,  a  certain  portion 
coming  due  each  six  months.  The  payment  of 
these  bonds  when  thev  become  due  is  further 


EXAMINATION  OF  PROPERTY  43 

assured  by  the  creation  of  a  sinking  fund,  the 
maker  of  the  bond  issue  being  required  to  deposit 
with  the  trustee  a  certain  amount  of  money  be- 
fore the  trees  are  cut  down  for  each  1,000  feet 
of  timber  to  be  cut.  Accompanying  the  pay- 
ments to  the  sinking  fund  is  a  sworn  statement 
showing  by  the  same  descriptions  used  in  the 
trust  deed  and  the  timber  estimators '  plats,  the 
lands  from  which  the  timber  is  to  be  cut,  and 
further  certifying  under  oath  that  no  timber 
has  been  cut  on  the  lands  mortgaged  without 
proper  payment  having  been  made  to  the  sink- 
ing fund.  The  maker  of  the  bonds  further 
agrees  to  give  free  access  to  all  the  property, 
books  of  account  and  vouchers  for  the  purpose 
of  checking  the  correctness  of  any  such  state- 
ments. As  these  statements  are  under  oath,  if 
they  are  false,  the  maker  will  make  himself 
liable  to  criminal  prosecution. 

"Through  the  operation  of  the  sinking  fund 
in  the  timber  bond  issues  the  equity  grows 
larger  from  year  to  year  as  the  bonds  are  paid 
off,  without  taking  into  consideration  the  an- 
nual increase  in  the  value  of  the  standing  tim- 
ber. In  the  case  of  one  large  southern  lumber 
company  the  bond  issue  was  made  on  the  basis 
of  $2  per  thousand  feet  stumpage.  Under  the 
terms  of  the  trust  deed  this  company  was  re- 
quired to  pay  into  a  sinking  fund  $3.50  per 
thousand  feet  for  timber  cut.  Through  the 
operation  of  the  sinking  fund  in  that  issue  the 
debt  decreases  from  year  to  year  until  the  last 


44  TIMBER  BONDS 

series  of  bonds  are  secured  at  the  rate  of  16% 
cents  per  thousand  feet  stumpage. 

"In  another  issue  the  debt  per  thousand  feet 
stumpage  was  originally  $1 .81.  This  decreases 
from  year  to  year  until  the  debt  per  thousand 
feet,  when  the  last  series  of  bonds  are  outstand- 
ing, is  21  cents.  This  company  pays  into  the 
sinking  fund  $4  per  thousand  feet  for  timber 
cut. 

"It  is  in  checking  up  the  sinldng  fund  that  the 
value  of  the  timber  cruisers'  plat  is  again 
shown.  Although  there  is  no  legal  obligation 
on  our  part  to  check  up  sinking  fund  payments, 
we  make  a  business  of  doing  it,  not  only  for  our 
own  satisfaction  to  know  that  the  provisions  of 
the  trust  deed  are  being  fulfilled  in  every  par- 
ticular, but  as  an  additional  protection  to  the 
interests  of  customers  who  have  bought  the 
bonds  on  our  recommendations.  The  services 
of  Mr.  Straight  are  secured.  He  is  given  the 
plats  and  the  statements,  and  cruises  the  timber 
holdings  again  in  the  same  careful  and  pains- 
taking manner  as  before.  He  reports  on  his 
estimates  of  the  amount  of  timber  that  has  been 
manufactured  from  the  various  sections  and 
shows  the  difference  between  the  original  esti- 
mate and  the  actual  manufacture  into  lumber, 
if  any.  He  also  investigates  all  of  the  other 
timber  land  properties  that  are  security  for  the 
bonds,  reporting  on  whether  there  has  been  any 
cutting  of  timber  of  which  no  report  has  been 
made.    Thus  it  will  be  seen  that  there  is  con- 


EXAMINATION  OF  PROPERTY  45 

stant  checking  and  recliecking  for  the  protec- 
tion of  the  clients  of  Clark  L.  Poole  &  Com- 
pany. ' ' 

The  foregoing  is  an  excellent  description. 
There  are  several  rules  used  by  timber  cruisers 
for  estimating  the  amount  of  lumber  in  a  tree. 
The  unit;  the  'board  foot,'  is  one  square  foot 
one  inch  thick.  The  Doyle  rule,  which  is  very 
generally  used,  figures  as  follows :  Deduct  four 
inches  from  the  diameter  of  the  log  as  allow- 
ance for  slab,  square  one-fourth  of  the  remain- 
der and  multiply  by  the  length  of  the  log  in  feet. 
The  result  is  the  board  contents.  There  is  also 
the  Ropp  rule,  the  Spaulding  rule,  the  Doyle 
and  Scribner  rule,  the  Scribner  rule  and  the 
British  Columbia  rule.  In  addition  there  are 
modifications  and  combinations  of  these  rules. 
They  all  depend  entirely  on  the  cruiser  using 
them  and  the  nature  of  the  timber.  The  esti- 
mates should  be  carefully  verified  before  mak- 
ing the  loan. 


CHAPTER  VIII. 

CONTRACT    TO    DELIVER   BONDS. 

To  purchase  an  issue  each  bond  house  and 
banker  uses  a  private  form  of  contract  or  agree- 
ment. These  forms  range  from  a  verbal  under- 
standing to  the  most  elaborate  written  instru- 
ment. The  nature  of  the  document  depends  to 
some  extent  on  the  particular  transaction.  The 
two  forms  given  below  contain  all  the  basic 
clauses  and  can  be  modified  to  suit  any  specific 
case.  These  forms  are  each  standard  with  two 
large  bond  houses.  Form  number  one  is  a 
splendid  contract  in  the  nature  of  a  letter  writ- 
ten by  the  bond  house  and  accepted  by  the 
timberman.  Form  number  two,  while  simpler 
than  number  one,  is  an  excellent  docunlent  in 
the  shape  of  a  letter  written  by  the  timberman 
to  the  bond  house.  Form  number  two  is  not  as 
favorable  to  the  timberman  as  form  number 
one,  because  the  bond  house  does  not  accept  it 
and  can  decline  the  bonds  at  pleasure : 

FORM  NO.  1. 
Gentlemen:  — 

From  your  representations  we  understand  as  follows:  — 

(1)  That  you  own  in  fee  simple  approximately 

acres  of  timber  lands  in   ,  being  in  Town- 
ships   ,  Range  

(2)  That  upon  said  acres  there  is  at  the  pres- 
ent time  approximately  feet  of  standing  and  liv- 
ing timber,  consisting  of  approximately  

{Here  insert  quantity  of  each,  kind.) 

(3)  That  you  also  own  free  of  encumbrance  plant  and 

46 


CONTRACT  TO  DELIVER  BONDS  47 

equipment  located  in  Section   Township   .....  Range 

and  logging  outfit  including 

{Here  insert  descriptions  of  logging  equipment.) 

That  said  plant  is  capable  of  cutting feet  of 

lumber,  board  measure,  per  day  of  10-hour  run,  and  that  the 
plant,  planing  mill  and  timber  lands  above  mentioned  have 
a  value  in  excess  of dollars. 

(4)  That  you  desire  to  proceed  forthwith  to  make  an 
issue  of  Bonds,  secured  by  mortgage  which  shall  be  a  first 
lien  on  all  the  property  heretofore  mentioned,  said  bond 

issue  to  be  on  basis  of  not  exceeding per  thousand 

on  the  timber  as  shall  be  determined  in  the  manner  here- 
inafter stated  and  not  to  exceed  in  any  event  the  sum  of 
dollars. 

That  the  Trustee  under  said  mortgage  shall  consist  of 
one  trustee,  an  individual  or  trust  company,  or  two  trustees, 
both  an  individual  and  trust  company  as  may  be  chosen 
and  approved  by  us. 

(5)  That  said  bonds  are  to  be  dated  

and  bear  interest  at  the  rate  of  6%   per  annum,  payable 

,  and  semi-annually  thereafter,  both  principal  and 

interest  of  said  bonds  to  be  payable  in  Gold  Coin  in 

at  the  office  of  the  Trustee  or  such  other  office  as 

may  prefer  (to  be  definitely  designated  in  the  Mortgage  and 
Bond)  and  that  the  said  bonds  shall  be  in  the  denominations 
of  $1,000  and  $500  and  become  due  serially  as  follows: 

(Here  insert  serial  dates.) 

(6)  That  all  said  bonds  shall  be  redeemable  before 
maturity  on  any  interest  payment  date  upon  ninety  days' 
notice  at  a  premium  of  3%. 

(7)  That  the  payment  of  each  and  all  of  said  bonds — 

both  principal  and  interest — shall  be  guaranteed  by 

in  such  legal  form  as  shall  be  satisfactory  to  our  attorney. 

(8)  That  you  will  furnish  detailed  estimates  made  by 
a  competent  timber  cruiser,  to  be  approved  by  us,  showing 
the  amount  of  merchantable  timber  upon  the  tract  of  land 
above  referred  to. 

(9)  That  you  will  furnish  at  your  expense  an  audit  of 
your  books  and  accounts  made  by  an  auditor  selected  by 
us  and  satisfactory  to  us. 

(10)  That  you  will  furnish  satisfactory  abstracts  of  title 
to  all  the  above  mentioned  land  and  an  opinion  upon  the 
title  from  some  competent  attorney-at-law,  to  be  approved 
by  us,  to  the  effect  that  the  said  titles  are  clear  and  unen- 
cumbered and  that  the  mortgage  above  referred  to  fur- 
nishes a  first  lien  for  the  bonds  therein  described. 

That  you  will  also  pay  for  the  preparation  by  such  at- 


48  TIMBER  BONDS 

torney  of  the  bonds  and  the  mortgage  and  for  all  other 
legal  services  in  connection  therewith. 

(11)  That  the  Mortgage  or  Trust  Deed  shall  be  in  form 
approved  by  our  counsel  and  that  among  other  things  the 
Mortgage  shall  provide  that  the  Mortgagor  may  secure  the 
release  of  the  timber  under  the  mortgage  upon  the  payment 
to  the  Trustee  for  the  benefit  of  the  bondholders  the  sum  of 

per  thousand  feet  stumpage  on  the  estimates  as  made 

by as  above  provided  herein. 

That  the  Mortgagor  may  secure  the  release  of  the  cut- 
over  lands  from  the  Hen  of  the  Mortgage  provided  such 
lands  are  sold  for  cash  and  the  cash  is  paid  over  to  the 
Trustee  for  the  benefit  of  the  bondholders  and  that  such  sale 
has  the  written  approval  of  

That  in  case  the  timber  on  the  land  above  described  or 
any  portion  thereof  shall  be  damaged  by  fire  or  other  ele- 
ments, the  Mortgagor  shall  within  sixty  days  after  the  ex- 
tent of  such  loss  shall  be  determined  pay  to  the  Trustee  for 
the  benefit  of  the  bondholders  the  sum  of per  thou- 
sand feet  stumpage  on  the  estimates  furnished  by  

as  above  provided  herein;  the  salvage  of  such  timber  to 
remain  subject  to  the  lien  of  the  Mortgage  and  when  re- 
moved, if  removed,  in  accordance  with  the  above  pro- 
visions, the  Mortgagor  to  pay  to  the  Trustee  for  the  benefit 

of  the  bondholders  an  additional per  thousand  feet 

stumpage. 

That  in  case  of  default  in  the  payment  of  either  principal 
or  interest,  the  Trustee  may  and  upon  demand  of  the  hold- 
ers of  10%  of  the  bonds  then  outstanding  shall  declare  all 
the  bonds  then  outstanding  due  and  payable,  and  the  Trus- 
tee shall  have  the  same  right  and  duty  should  there  be  any 
failure  upon  the  part  of  the  Mortgagor  to  make  the  pay- 
ment provided  for  in  case  of  damage  or  destruction  to  the 
timber  by  fire  or  other  elements; 

That  you  will  furnish  us  with  semi-annual  statement  of 
the  financial  condition  of together  with  an- 
nual audit  of  your  books  and  accounts  made  by  auditors 
approved  by  us  and  also  with  such  other  information  bear- 
ing upon  the  security  of  the  bonds  as  we  may  desire  at 
such  times  as  we  may  deem  it  necessary,  all  of  such  ex- 
aminations and  audits  to  be  made  at  your  expense,  and  that 
for  the  purpose  of  gathering  and  verifying  such  informa- 
tion you  will  give  us  free  access  to  the  books  of  record  and 
account  of  the 

(12)  That  in  addition  to  the  payment  of  the  cruising 
and  legal  expenses  previously  mentioned  herein,  you  agree 
to  pay  the  cost  of  engraving  the  bonds,  printing  of  the  mort- 


CONTRACT  TO  DELIVER  BONDS  49 

gage  and  releasing  list,  trustees'  fees,  recording  fees  and 
other  incidental  expenses. 

(13)  That  so  soon  as  the  said  bonds  are  properly  ex- 
ecuted and  ready  for  delivery,  they  shall  be  placed  In  the 
hands  of  the  Bank,  with  instructions  to  de- 
liver said  bonds  to  us  upon  the  payment  of  . .  %  of  the  par 
value  of  the  principal  thereof  plus  accrued  interest. 

(14)  Subject  to  all  the  above   agrees; 

(a)  That  if  upon  investigation  they  are  satisfied  of  the 
correctness  of  the  above  representations  with  ref- 
erence to  the  amount  and  value  of  the  properties  men- 
tioned and  the  title  thereto; 

(b)  That  the  Mortgagor  and  Guarantor  are  in  satisfac- 
tory financial  condition; 

(c)  That  the  Bonds  of  the  character  and  with  the  se- 
curity above  proposed  are  in  their  opinion  market- 
able; 

(d)  That  the  investigation  of  the  title  and  timber  and 
the  preparation  of  the  bonds  and  mortgage  have  at 
that  time  been  completed  to  their  satisfaction  that 

they  will  purchase  said  Bonds  on or  so 

soon  thereafter  as  they  may  be  ready  for  delivery  at 
. .  %  of  the  par  value  of  the  principal  thereof  plus 
accrued  interest; 

(15)  Should  this  contract  not  be  carried  out  on  account 
of  failure  of  title  or  failure  of  the  timber  estimator  to  find 

the  amount  and  value  of  timber  satisfactory  to 

or  incorrect  representations  in  any  of  the  preceding  por- 
tion hereof,  you  are  to  reimburse  us  (and  by  accepting  this 
contract  you  so  agree)  for  all  expenses  of  every  kind  in- 
curred by  us  in  this  connection  up  to  that  time. 

This  proposition  is  subject  to  prompt  acceptance  and  if 
accepted  it  will  constitute  a  contract  between  us. 

Yours  truly. 


Accepted : 

FORM  NO.   2. 
Gentlemen: — 

We  agree  to  sell  you  an  issue  of  First  Mortgage  Bonds 

in  the  amount  of dollars  secured  by  a  trust 

deed  upon  the  timber  and  land  now  owned  or  held  in  the 
name  of also  on  the  logging  equip- 
ment, railroads,  mills  and  other  properties  of  the  company. 

Under  the  Trust  Deed  there  will  be  about acres 

of  land  and  timber,  containing  approximately 


50  TIMBER  BONDS 

feet,  these  lands  and  properties  being  particularly  described 
as  follows: 

(Here  insert  legal  description.) 

That  the  title  to  all  of  the  above  property  is  vested  in 
us.  That  we  will  proceed  forthwith  to  make  an  issue 
of  dollars  of  bonds  secured  by  first  mort- 
gage, which  shall  be  a  prior  lien  on  all  the  property  here- 
tofore mentioned.  Interest  on  the  bonds  to  be  at  the  face 
rate  of  six  (6%)  per  cent  per  annum,  payable  semi-annual- 
ly. The  principal  of  the  bonds  to  be  due  and  payable 
serially,  commencing  one  year  from  date  of  the  bonds  ac- 
cording to  the  following  schedule: 

(Here  insert  serial  dates.) 

The  bonds  shall  be  dated  

The  trust  deed  shall  contain  a  sinking  fund  provision 
for  the  deposit  monthly  of dollars  per  thou- 
sand feet,  board  measure,  lumber  tally,  on  all  timber  cut 
from  the  lands  of  the  company  during  the  preceding  month, 
and  shall  also  provide  that  such  deposit  in  the  sinking  fund 
shall  be  made  in  accordance  with  a  sworn  statement  of 
the  operations  of  the  company  covering  the  month  for 
which  such  deposit  is  made.  The  depositary  for  the  sink- 
ing fund  moneys  shall  be  selected  by  you  and  shall  pay 
over  such  sinking  fund  moneys  at  the  direction  of  the 
trustee  under  the  trust  deed.  Such  sinking  funds  shall  be 
used  to  retire  the  principal  of  the  bonds  as  they  mature  and 
any  surplus  remaining  in  the  sinking  fund  at  the  end  of 
any  six  months'  period  may  be  used  to  retire  the  bonds  at 
par  and  accrued  interest  and  a  premium  of  five  (5)  per 
cent. 

The  trust  deed  or  mortgage  shall  contain  such  other 
legal  provisions  as  may  be  required  by  you  to  make  said 
bonds  marketable  and  a  safe  investment. 

The  right  to  prepay  the  bonds  at  the  end  of  the  first 
year  and  on  any  semi-annual  interest  payment  day  there- 
after by  the  payment  of  principal,  accrued  Interest  and  a 
premium  of  (5)  per  cent,  upon  sixty  (60)  days  previous 
written  notice,  shall  be  retained. 

There  shall  be  furnished  to  you  and  the  trustee  a  semi- 
annual balance  sheet  and  an  annual  audit  of  our  books  and 
accounts,  made  by  auditors  approved  by  you,  and  also  an 
audit  of  our  books  and  accounts  by  an  auditor  selected  by 
you,  and  at  any  time  that  you  may  demand  it.  All  of  such 
audits  and  balance  sheets  to  be  furnished  at  the  expense  of 
the  mortgagor. 

Cut-over  lands,  timber  land  and  timber  may  be  sold  for 
cash  upon  your  written  approval  provided  such  cash  be 


CONTRACT  TO  DELIVER  BONDS  61 

paid  into  tlae  sinding  fund,  but  such  payments  not  to  ex- 
ceed sinking  fund  stumpage  rate. 

There  shall  be  furnished  to  you  at  the  expense  of  the 
mortgagor  a  report  and  cruise  upon  the  properties  involved, 
to  be  made  by  a  cruiser  satisfactory  to  you  and  there  shall 
also  be  furnished  you  without  expense  on  your  part,  an 
audit  of  all  books  and  accounts  of  said  companies  made  by 
an  auditor  selected  by  you. 

The  expense  of  all  legal  work  by  attorneys  selected  by 
you,  covering  all  legal  procedure  of  any  nature  in  connec- 
tion with  the  issuance  of  the  bonds,  writing  the  mortgage, 
examining  title,  etc.,  shall  be  paid  by  the  mortgagor. 

The  bonds  shall  be  prepared,  lithographed,  printed  and 
certified  at  the  expense  of  the  mortgagor,  and  under  the 
supervision  of  your  attorneys  and  shall  be  in  amounts,  form 
and  text  satisfactory  to  you. 

The  trustee  under  the  trust  deed  shall  be  selected  by 
you  and  the  principal  and  interest  may  be  payable  at  any 
place  that  you  may  name. 

is  to  personally  guarantee 

the  payment  of  each  and  all  of  the  bonds  issued,  both  the 
principal  and  interest,  in  such  form  as  shall  be  satisfactory 
to  your  attorneys. 

That  in  case  of  default  in  the  payment  of  either  prin- 
cipal or  interest  for  a  period  of  sixty  days,  the  trustee  may 
and  upon  demand  of  the  holders  of  15%  of  the  bonds  then 
outstanding  shall  declare  all  the  bonds  then  outstanding 
due  and  payable. 

The  bonds  are  to  be  turned  over  to  you  at  ....  cents  on 
the  dollar  for  each  dollar  of  said  bonds. 

Should  this  contract  not  be  carried  out  through  fault 
of  ours,  we  will  reimburse  you  for  all  expenses  of  every 
kind  incurred  by  you  in  connection  with  this  transaction. 

Yours  very  truly. 

An  analysis  of  the  foregoing  forms  will  give 
the  student  a  sound  understanding  of  what  the 
bond  house  demands  from  the  timberman  be- 
fore purchasing  his  securities.  There  are  deal- 
ers who  do  not  make  such  exacting  requests, 
but  such  dealers  are  responsible  for  practically 
all  the  defaults  in  the  timber  bonds. 


CHAPTER  IX. 

LEGAL  FEATURES. 

The  attorneys  passing  on  a  bond  issue  and 
vouching  for  the  perfection  of  titles  and  legal- 
ity of  all  actions  connected  with  the  transaction 
must  be  very  able,  experienced  and  of  the  high- 
est standing  amongst  lawyers.  The  attorneys 
must  safeguard  the  affairs  of  all  parties  and 
treat  each  interest  with  fairness.  They  must 
consider  the  borrower,  the  bond  dealer,  the 
trustee  and  the  private  investor. 

The  timber  holdings  usually  cover  a  wide 
area.  They  often  extend  over  several  counties 
and  sometimes  are  located  in  two  or  more 
states.  The  descriptions  are  complicated,  and 
the  work  of  passing  on  them  heavy  and  exact- 
ing. The  original  records  at  the  county  seats 
should  always  be  examined.  Some  bond  houses 
float  bonds  without  investigating  further  than 
the  abstract  furnished  them.  Abstractors  are 
human  and  in  isolated  districts  are  sometimes 
careless.  It  is  safe  to  take  the  abstracts  of  well 
known  abstract  companies,  but  even  then  it  is 
bad  practice.  The  present  owner  of  the  timber 
usually  accepts  the  abstracts  furnished  him  by 
the  seller.  He  does  not  know  how  the  original 
records  read  and  cannot  be  blamed  later  on  if 
titles  are  questioned  or  clouded.  It  costs  more 
money  and  is  harder  work  to  go  over  and  com- 

52 


LEGAL  FEATURES  53 

pare  the  original  records,  but  it  is  well  worth 
the  difference  in  price.  The  titles  are  made 
perfect,  the  value  of  the  security  increased,  the 
bonds  become  a  more  desirable  investment  and 
their  price  is  accordingly  enhanced. 

The  attorneys  must  examine  the  resolutions 
of  stockholders  and  directors  authorizing  the 
bond  issue.  They  must  make  sure  the  meetings 
were  properly  called,  the  necessary  amount  of 
shares  voting  and  the  bonds  legally  authorized 
according  to  the  constitution  and  by-laws  of  the 
company  and  any  laws  of  the  state  or  nation 
that  might  affect  them.  Some  bond  houses  in- 
sist on  an  unanimous  vote  of  all  the  stock  in 
favor  of  the  bond  issue  before  they  will  buy  the 
bonds.  This  is  good  practice  no  matter  what 
the  state  laws  may  call  for.  It  prevents  any 
possible  trouble  with  minority  interests  and 
creates  a  favorable  impression  all  around. 

The  attorney  usually  makes  the  arrangements 
with  the  trustee  for  the  various  services  to  be 
performed  in  that  function.  The  attorney 
drafts  the  text  of  the  bond  and  attends  to  all 
the  other  legal  matters.  A  recent  timber  bond 
issue  failed  to  be  accepted  at  the  last  moment 
when  it  was  discovered  there  were  defects  in 
the  legal  procedure  when  the  company  was  in- 
corporated several  years  before.  They  were 
purely  technical  faults  due  to  a  slipshod  attor- 
ney, but  they  killed  the  bonds.  Each  individual 
bond  issue  will  have  its  particular  legal  aspects. 
In  general,  however,    the    attorneys  must  see 


54  TIMBER  BONDS 

that  the  company  issuing  the  bonds  has  perfect 
title  to  the  property  to  be  mortgaged  under  the 
trust  deed;  that  there  are  no  liens  against  the 
property;  that  the  company  has  been  legally 
and  properly  incorporated;  that  the  company 
has  the  right  to  mortgage  the  property;  that 
the  meeting  of  the  stockholders  at  which  the 
resolution  to  bond  the  property  was  passed  was 
legally  and  regularly  .called ;  that  the  necessary 
number  of  votes  were  cast  in  favor  of  the  bond 
issue ;  that  the  mortgage  is  properly  drawn,  the 
trustee  duly  qualified  and  the  bond  properly 
lithographed.  The  most  vital  work  of  the  at- 
torney is  making  the  mortgage  or  trust  deed. 


CHAPTER  X. 

THE  TKUST  DEED. 

Drawing  the  mortgage  or  trust  deed  is  a  very 
important  part  of  a  bond  issue.  The  mortgage 
outlines  the  duties  of  all  concerned,  describes 
the  security  and  safeguards  the  bondholders. 
The  mortgage  should  be  drawn  by  a  man  who 
is  a  good  lawyer,  an  eminent  title  attorney  and 
who  thoroughly  understands  timber  lands,  lum- 
ber operations  and  making  bond  issues.  The 
three  following  mortgages  consist  of  two  or- 
dinary trust  deeds  and  one  in  which  two  com- 
panies combine  as  mortgagors.  These  docu- 
ments show  affairs  as  handled  in  the  South  and 
Pacific  Northwest.  The  titles  covered  by  them 
were  all  examined  on  the  original  records,  and 
therefore,  they  are  correct  and  the  descriptions 
accurate.  The  mortgages  are  given  in  full  de- 
tail to  facilitate  their  use  as  a  guide  and  ref- 
erence or  a  check  on  other  trust  deeds. 

To  prove  the  soundness  of  the  practice  of  go- 
ing to  the  original  records  on  matters  of  title, 
it  is  only  necessary  to  say  that  all  the  bonds 
covered  by  these  mortgages  are  now  worth  a 
premium.  These  trust  deeds  were  drawn  by 
Mr.  Edward  E.  Barthell,  Nashville,  Tennessee, 
who  is  probably  the  ablest  title  attorney  in  the 
United  States  and  one  of  the  best  bond  lawyers 
in  active  practice : 

55 


FIRST  MORTGAGE 


LIJTN"  AND  LANE  TIMBER  COMPANY 

AND 

A.    SMITH   LUMBER   AND    MANUFACTURING 

COMPANY 

TO 

UNION  TRUST  COMPANY 

AND 

FREDERICK  H.  RAWSON 

TRUSTEES 


DATED  JUNE  6,  1910 


TO    SECURE    bye    GOLD    BONDS    OF    LINN    AND    LANE 

TIMBER      COMPANY      IN      THE      AMOUNT 

OF  $1,500,000.     DATED  JUNE  6,  1910 


56 


TRUST  DEEDS  57 

THIS  INSTRUMENT,  made  and  entered  into 
June  6, 1910,  by  and  between  Linn  and  Lane 
Timber  Company,  a  corporation  organized 
and  existing  under  and  by  virtue  of  the 
laws  of  the  State  of  Minnesota  (sometimes 
hereinafter  for  brevity  called  the  Com- 
pany), party  of  the  first  part;  C.  A.  Smith 
Lumber  and  Manufacturing  Company,  also 
a  corporation  organized  and  existing  under 
and  by  virtue  of  the  laws  of  the  State  of 
Minnesota,  party  of  the  second  part  (some- 
times hereinafter  referred  to  as  the  Lum- 
ber and  Manufacturing  Company,  and  said 
two  parties  being  hereinafter  sometimes 
referred  to  as  the  Grantors),  both  of  which 
corporations  have  qualified  themselves  to 
own  property  and  to  do  business  in  the 
State  of  Oregon;  and  Union  Trust  Com- 
pany, a  corporation  organized  and  existing 
under  and  by  virtue  of  the  laws  of  the  State 
of  Illinois  (and  which  is  sometimes  herein- 
after referred  to  as  the  Corporation  Trus- 
tee), and  Frederick  H.  Eawson,  of  Chica- 
go, Illinois,  as  trustees,  parties  of  the  third 
part, 
witnesseth  that  : 

Whekeas,  Linn  and  Lane  Timbek  Company 
is  the  owner  of  certain  lands,  timber,  timber 
rights,  rights  of  way,  and  logging  rights,  in  the 
Counties  of  Coos,  Curry,  Douglas,  Lane,  Lin- 
coln and  Linn,  in  the  State  of  Oregon ;  and  has 
full  power  and  authority  under  its  charter  and 


58  TIMBER  BONDS 

the  laws  of  the  States  of  Minnesota  and  Ore- 
gon, to  borrow  money  for  the  transaction  of  its 
business  and  the  exercise  of  its  corporate  pow- 
ers, to  issue  its  negotiable  bonds  to  evidence 
the  indebtedness  thus  incurred,  and  to  mort- 
gage its  property  to  secure  the  payment  of  the 
same;  and 

Wheeeas,  by  unanimous  action  of  its  Board 
of  Directors,  concurred  in  by  the  owners  and 
holders  of  its  entire  capital  stock  (both  of 
which  actions  have  been  duly  expressed  accord- 
ing to  law)  the  Company  has  resolved  to  bor- 
row money  for  its  corporate  purposes,  and  to 
issue  and  dispose  of  its  negotiable  mortgage 
bonds  therefor,  and  to  secure  the  payment  of 
said  bonds,  together  with  the  interest  thereon, 
by  a  mortgage  or  deed  of  trust  in  the  form  of 
this  instrument,  upon  its  property  hereinafter 
described,  together  with  the  rents,  issues  and 
profits  of  the  same,  and  which  mortgage  or 
deed  of  trust  shall  be  a  first  lien  thereon;  and 

Whereas,  by  unanimous  action  of  its  Board 
of  Directors,  concurred  in  by  the  owners  and 
holders  of  its  entire  capital  stock  (both  of  which 
actions  have  been  duly  expressed  according  to 
law)  the  Company  has  further  resolved  that 
said  bonds  shall  bear  date  of  June  6,  1910,  shall 
be  for  the  aggregate  amount  of  One  Million, 
Five  Hundred  Thousand  (1,500,000)  Dollars, 
shall  be  numbered  consecutively  from  1  to  1,575, 
both  numbers  inclusive,  bonds  numbered  1  to 
•1,425,  both  numbers  inclusive,  being  for  the 


TRUST  DEEDS 


59 


principal  sum  of  One  Thousand  (1,000)  Dollars 
each,  and  bonds  numbered  1,426  to  1,575  both 
numbers  inclusive,  being  for  the  principal  sum 
of  Five  Hundred  (500)  Dollars  each,  and  which 
bonds  shall  become  due  and  payable  as  follows, 
to-wit : 


Bonds  numbered  1  to 
Bonds  numbered  26  to 
Bonds  numbered  51  to 
Bonds  numbered  76  to 
Bonds  numbered  101  to 
Bonds  numbered  126  to 
Bonds  numbered  151  to 
Bonds  numbered  201  to 
Bonds  numbered  251  to 
Bonds  numbered  301  to 
Bonds  numbered  351  to 
Bonds  numbered  401  to 
Bonds- numbered  451  to 
Bonds  numbered  501  to 
Bonds  numbered  551  to 
Bonds  numbered  601  to 
Bonds  numbered  651  to 
Bonds  numbered  701  to 
Bonds  numbered  751  to 
Bonds  numbered  801  to 
Bonds  numbered  851  to 
Bonds  numbered  901  to 
Bonds  numbered  951  to 
Bonds  numbered  1001  to 
Bonds  numbered  1051  to 
Bonds  numbered  1101  to 
Bonds  numbered  1151  to 
Bonds  numbered  1201  to 
Bonds  numbered  1251  to 
Bonds  numbered  1301  to 
Bonds  numbered  1351  to 
Bonds  numbered  1426  to 


25  inclusive  on  December  1,  1911 
50  inclusive  on  June  1,  1912; 
75  inclusive  on  December  1,  1912 
100  inclusive  on  June  1,  1913; 
125  inclusive  on  December  1,  1913 
150  inclusive  on  June  1,  1914; 
200  inclusive  on  December  1,  1914 
250  inclusive  on  June  1,  1915; 
300  inclusive  on  December  1,  1915 
350  inclusive  on  June  1,  1916; 
400  inclusive  on  December  1,  1916 
450  inclusive  on  June  1,  1917; 
500  inclusive  on  December  1, 1917 
550  inclusive  on  June  1,  1918; 
600  inclusive  on  December  1, 1918 
650  inclusive  on  June  1,  1919; 
700  inclusive  on  December  1, 1919 
750  inclusive  on  June  1,  1920; 
800  inclusive  on  December  1, 1920 
850  inclusive  on  June  1,  1921; 
900  inclusive  on  December  1, 1921 
950  inclusive  on  June  1,  1922; 
1000  inclusive  on  December  1, 1922 
1050  inclusive  on  June  1,  1923; 
1100  inclusive  on  December  1, 1923 
1150  inclusive  on  June  1,  1924; 
1200  inclusive  on  December  1, 1924 
1250  inclusive  on  June  1,  1925; 
1300  inclusive  on  December  1, 1925 
1350  Inclusive  on  June  1,  1926; 
1425  inclusive  on  December  1, 1926 
1575  inclusive  on  June  1,  1927; 


all  payable  to  bearer  (unless  registered)  in  gold 
coin  of  the  United  States  of  America  of  the 
standard  of  weight  and  fineness  existing  on 
June  6,  1910,  notwithstanding  any  law  wMch 


60  TIMBER  BONDS 

may  now  or  hereafter  make  anything  else  a 
tender  in  payment  for  debts,  at  the  office  of 
Union  Trust  Company,  in  the  City  of  Chicago 
and  State  of  Illinois,  together  with  interest  on 
said  bonds  at  the  rate  of  six  (6)  per  centum  per 
annum,  which  interest  shall  be  similarly  pay- 
able in  like  gold  coin,  December  1,  1910,  and 
semi-annually  thereafter  on  the  first  day  of 
June  and  the  first  day  of  December  in  each  year 
until  the  principal  sum  shall  be  fully  paid,  upon 
the  presentation  and  surrender  of  the  coupons 
annexed  to  each  of  said  bonds  as  they  respec- 
tively become  due,  at  the  office  of  said  Trust 
Company ;  that  the  said  bonds  shall  be  executed 
in  the  name  of  the  Company  by  the  President 
(or  the  Vice-President)  and  the  Secretary  of 
the  Company,  with  its  corporate  seal  affixed,  and 
that  all  the  interest  coupons,  issued  to  evidence 
the  interest  upon  said  bonds  until  their  maturity 
shall  be  authenticated  by  the  fac-simile  signa- 
ture of  the  Treasurer  of  the  Company;  and  that 
each  of  said  bonds  and  each  of  the  coupons 
thereto  attached,  and  the  Trustee's  and  Eeg- 
istrar's  certificates  endorsed  thereon,  shall  be 
substantially  in  the  forms  following,  to-wit: 

UNITED  STATES  OF  AMERICA. 
State  of  Oregon. 

$ Number $ 

Linn  and  Lane  Timber  Company 

First  Mortgage  Six  per  Cent  Gold  Bond. 
For  value  received  Linn  and   Lane    Timber    Company 
(hereinafter  called  the  Company),  a  corporation  under  the 
laws  of  the  State  of  Minnesota,  and  duly  qualified  to  do 


TRUST  DEEDS  61 

business  in  the  State  of  Oregon,  hereby  promises  to  pay 
to  the  bearer  hereof,  or  in  case  this  bond  be  registered, 
then  to  the  registered  holder  hereof,  Dol- 
lars, on  the  first  day  of 19 and  to  pay 

interest  thereon  from  the  date  hereof  at  the  rate  of  six 
(6)  per  cent  per  annum  payable  semi-annually  on  the  first 
day  of  December  and  the  first  day  of  June  in  each  year, 
upon  the  presentation  and  surrender  of  the  coupons  hereto 
annexed  as  they  severally  become  due,  both  principal  and 
interest  being  payable  at  the  banking  house  of  Union  Trust 
Company,  in  the  City  of  Chicago,  and  State  of  Illinois,  In 
gold  coin  of  the  United  States  of  America,  of  or  equal  to 
the  present  standard  of  weight  and  fineness,  notwithstand- 
ing any  law  which  may  now  or  hereafter  make  anything 
else  legal  tender  for  the  payment  of  debts,  without  deduc- 
tion for  any  United  States,  State,  County,  Municipal  or 
other  tax  or  taxes  or  governmental  or  other  charges,  which 
the  Company  or  its  successors  or  assigns,  or  the  Trustees 
or  either  of  them,  hereinafter  mentioned  may  be  required, 
or  permitted,  to  pay,  or  to  deduct  or  retain  therefrom  under 
or  by  reason  of  any  present  or  future  law. 

This  bond  is  one  of  a  series  of  1575  bonds  in  denomina- 
tions of  $1,000  and  $500  maturing  at  divers  dates  during 
the  period  from  December  1,  1911,  to  June  1,  1927,  both 
dates  inclusive,  amounting  in  the  aggregate  as  to  the  prin- 
cipal thereof  to  $1,500,000  issued  under  the  provisions  and 
equally  secured  by  a  first  mortgage  or  deed  of  trust  dated 
June  6,  1910,  duly  executed,  acknowledged,  recorded  and 
delivered  by  the  Company  to  Union  Trust  Company  and 
Frederick  H.  Rawson  of  Chicago,  Illinois,  as  Trustees.  The 
said  mortgage  or  deed  of  trust  is  joined  in  by  C.  A.  Smith 
Lumber  and  Manufacturing  Company,  a  corporation  under 
the  laws  of  the  State  of  Minnesota  and  duly  qualified  to 
do  business  in  the  State  of  Oregon,  conveying  certain  of 
its  property  therein  described.  The  said  mortgage  or  deed 
of  trust  embraces  timber,  timber  lands,  logging  rights,  a 
saw-mill  plant,  and  other  similar  property  in  the  Counties 
of  Coos,  Curry,  Douglas,  Lane,  Lincoln  and  Linn,  all  in  the 
State  of  Oregon.  For  a  more  complete  description  of  the 
property  thereby  mortgaged;  the  nature  and  extent  of  the 
security;  the  description  of  the  bonds  thereby  secured  and 
the  rights  of  the  holders  thereof  under  the  same  and  the 
terms  and  conditions  upon  which  said  bonds  are  Issued, 
reference  is  hereby  made  to  said  mortgage  or  deed  of  trust 
with  the  same  force  and  effect  as  if  the  provisions  thereof 
were  herein  fully  set  forth. 

In  case  an  event  of  default  as  defined  in  the  aforesaid 
mortgage  or  deed  of  trust  shall  occur,  then  the  principal 


62  TIMBER  BONDS 

of  this  bond  may  be  declared  and  become  due  and  payable 
in  the  manner  and  with  the  effect  therein  provided. 

This  bond  is  purely  a  corporate  obligation,  and  no  re- 
course shall  be  had  for  Its  payment  against  any  stockholder, 
director  or  officer  of  the  maker  hereof,  unless  it  be  upon 
his  individual  indorsement  or  guarantee. 

In  the  manner  provided  in  said  mortgage  or  deed  of 
trust,  this  bond  may  be  redeemed  at  the  election  of  the 
Company,  at  any  interest  payment  date  before  its  date  of 
absolute  maturity  upon  payment  to  the  holder  hereof,  or 
to  Union  Trust  Company,  one  of  the  Trustees  hereunder, 
for  the  benefit  of  such  holder,  of  the  principal  hereof  and 
all  interest  due  thereon  at  the  date  fixed  for  such  redemp- 
tion, and  a  premium  of  two  and  one-half  (2i/^)  per  centum 
on  the  principal  hereof. 

This  bond  shall  pass  by  delivery  unless  registered,  but 
it  may  be  registered  as  to  the  principal  hereof  in  the 
holder's  name  on  books  of  Union  Trust  Company,  Trustee, 
kept  for  that  purpose,  such  registry  being  noted  hereon 
by  said  Trustee,  after  which  only  such  registered  holder 
shall  be  entitled  to  receive  the  principal  hereof;  and  if 
registered  no  subsequent  transfer  hereof  shall  be  valid, 
unless  made  on  said  Trustee's  books  and  similarly  noted 
hereon;  but  the  same  may  be  discharged  from  registry  by 
transfer  to  bearer,  after  which  it  shall  be  transferable  by 
delivery.  It  may  be  registered  again,  however,  in  the  man- 
ner above  provided.  The  registry  of  this  bond  shall  not 
impair  the  negotiability  of  the  coupons,  but  they  shall  con- 
tinue to  be  transferable  by  delivery  notwithstanding  such 
registration. 

The  Company  hereby  consents  in  case  of  the  foreclosure 
of  the  mortgage  or  deed  of  trust  given  to  secure  the  pay- 
ment of  the  said  bonds,  to  the  entry  of  a  deficiency  judg- 
ment against  it,  and  that  the  court  may  direct  in  any  de- 
cree of  foreclosure  of  said  mortgage  or  deed  of  trust  that 
any  balance  due  with  costs  and  interest,  which  may  remain 
unsatisfied  after  the  sale  of  the  said  mortgaged  premises 
and  the  application  of  the  proceeds  of  such  sale  toward 
the  payment  of  the  said  bonds,  shall  be  satisfied  from  any 
of  its  property. 

This  bond  shall  not  be  obligatory  for  any  purpose  until 
it  shall  have  been  authenticated  by  the  certificate  of  Union 
Trust  Company,  one  of  the  Trustees  under  said  mortgage 
or  deed  of  trust,  indorsed  hereon. 

In  witness  whereof,  Linn  and  Lane  Timber  Com- 
pany has  caused  this  instrument  to  be  signed  in  its  cor- 
porate name  by  its  President  and  its  corporate  seal  to  be 
hereto  affixed  and  attested  by  its  Secretary,  and  the  in- 


TRUST  DEEDS  63 

terest  coupons  hereto  attached  to  be  authenticated  by  the 
fac-simlle   signature   of   its   Treasurer,   this   sixth   day   of 

June,  1910. 

Linn  and  Lane  Timber  Company. 

By 

Its  President. 

Attest : 


Its  Secretary. 


On  the  first  day  of  19 Linn 

and  Lane  Timber  Company,  a  Minnesota  corporation  will 

pay  to  bearer  Dollars  in  gold  coin  of  the 

United  States  of  America  of  the  standard  existing  on  June 
6,  1910,  at  the  office  of  Union  Trust  Company  in  the  city  of 
Chicago,  State  of  Illinois,  without  deduction  for  taxes,  be- 
ing six  months'  interest  due  that  date  on  its  first  mortgage 
gold  bond  of  June  sixth,  1910,  No 


Treasurer. 

$ $ 

This  is  to  certify  that  this  is  one  of  the  bonds  described 
in  and  secured  by  the  mortgage  or  deed  of  trust  within 
referred  to. 

UNION  TRUST  COMPANY,   Trustee, 

By , 


Notice:  There  must  be  no  writing  in  this 
form  except  by  the  Trustee,  the  Union  Trust 
Company. 


And  whereas,  C.  A.  Smith  Lumber  and  Man- 
ufacturing Company  is  the  owner  of  a  mill 
plant,  appurtenances  and  equipment,  in  Coos 
County,  Oregon,  and  has  full  authority  under 
its  charter  and  the  laws  of  the  States  of  Minne- 
sota and  Oregon  to  mortgage  the  same  in  the 
furtherance  of  its  business ;  and 


64  TIMBER  BONDS 

Wheeeas,  the  parties  of  the  first  and  second 
parts  are  jointly  interested  in  the  carrjdng  out 
of  the  corporate  purposes  of  Linn  and  Lane 
Timber  Company  on  account  of  which  Linn  and 
Lane  Timber  Company  desires  the  funds  to  be 
obtained  by  it  by  the  execution,  issue  and  ne- 
gotiation of  the  bonds  above  described,  and  the 
C.  A.  Smith  Lumber  and  Manufacturing  Com- 
pany is  pecuniarily  interested  in  the  sale  of 
said  bonds,  and  in  the  application  of  the  pro- 
ceeds thereof  to  the  aforesaid  corporate  pur- 
poses of  Linn  and  Lane  Timber  Company;  and 

Whereas,  both  the  Board  of  Directors  and 
the  owners  of  the  entire  capital  stock  of  the  said 
C.  A.  Smith  Lumber  and  Manufacturing  Com- 
pany by  appropriate  action  regularly  taken  and 
legally  expressed,  have  unanimously  resolved 
that  said  Lumber  and  Manufacturing  Company 
join  in  this  mortgage  and  include  herein  its  said 
mill  plant  and  equipment,  and  the  land  upon 
which  it  is  located,  all  as  hereinafter  described ; 
and 

Wheeeas,  all  things  necessary  to  make  said 
bonds  when  executed  by  the  Company  and  cer- 
tified by  the  Corporation  Trustee,  a  valid,  bind- 
ing, legal,  negotiable  obligation  of  the  Com- 
pany, and  this  instrument  a  valid  mortgage  to 
secure  the  payment  thereof,  have  been  done, 
happened  and  been  performed: 

Now  theeefore,  for  and  in  consideration  of 
One  Dollar  ($1.00)  in  hand  paid  by  the  parties 
of  the  third  part  to  the  parties  of  the  first  and 


TRUST  DEEDS  66 

second  parts,  respectively,  the  receipt  whereof 
is  hereby  acknowledged,  and  the  other  consid- 
erations herein  expressed,  and  in  order  to  se- 
cure the  payment  of  the  principal  and  interest 
of  all  of  said  bonds  above  described  at  any  time 
outstanding  according  to  their  tenor  and  effect, 
and  to  secure  the  performance  of  all  the  cove- 
nants and  conditions  herein  contained  and  to 
declare  the  terms  and  conditions  upon  which 
said  bonds  are  issued  or  to  be  issued,  and  for 
and  in  consideration  of  the  acceptance  or  pur- 
chase of  said  bonds,  or  any  of  them,  by  whom- 
soever may  be  or  become  the  holders  thereof, 
the  said  Linn  and  Lane  Timbek  Company  and 
the  said  C.  A.  Smith  Lumber  and  Manufactur- 
ing Company  has  each  for  itself- executed  and 
delivered  these  presents,  and  each  for  itself 
hereby  grants,  sells,  bargains,  aliens,  releases, 
conveys,  assigns,  warrants,  transfers  and  mort- 
gages unto  said  Union  Trust  Company  and 
said  Frederick  H.  Rawson,  Trustees,  their  suc- 
cessors and  assigns,  with  full  subrogation  to 
any  and  all  warranties  or  rights  in  action 
against  previous  vendors  or  holders  or  other 
persons  the  following  described  timber,  timber 
rights,  rights  of  way,  logging  rights,  logging 
and  milling  plants  and  appurtenances,  ma- 
chinery, tracts  or  parcels  of  land  and  other 
property  lying,  being  and  situate  in  Coos, 
Curry,  Douglas,  Lane,  Lincoln  and  Linn  Coun- 
ties, State  of  Oregon,  each  grantor  granting, 
selling,  bargaining,  aliening,  releasing,  trans- 


66  TIMBER  BONDS 

ferring,  conveying,  assigning,  warranting  and 
mortgaging  its  own  property  and  not  the  prop- 
erty of  the  other,  that  is  to  say ; 

1.  Said  C.  A.  Smith  Lumber  and  Manufac- 
turing Company  hereby  grants,  sells,  bargains, 
aliens,  releases,  conveys,  transfers,  assigns, 
warrants  and  mortgages 

Mill  Site  and  Plant. 

Lots  three  (3)  and  four  (4)  and  the  tide  lands 
in  front  of  and  abutting  upon  lots  two  (2)  and 
three  (3)  and  four  (4)  in  Section  thirty-six  (36) 
of  Township  twenty-five  (25)  South  of  Range 
thirteen  (13)  West  of  the  Willamette  Meridian; 

Also  the  lumber  mill  plant  and  equipment  of 
said  C.  A.  Smith  Lumber  and  Manufacturing 
Company  (generally  known  as  the  Dean  Mill) 
including  all  saw-mills,  planing  mills,  dry  kilns, 
dry  sheds,  boilers^  engines,  railroad  track,  cars 
and  locomotives,  electric  light  plant,  power 
houses,  machine  shops,  water  works  and  all 
other  buildings  of  every  kind,  and  all  machinery 
and  equipment  in  any  wise  used  in  connection 
with  said  lumber  mill  plant  on  said  lots  three 
(3)  and  four  (4)  or  on  said  tide  lands  in  front 
of  and  abutting  upon  said  lots  two  (2),  three 
(3)  and  four  (4)  in  said  Section  thirty-six  (36), 
Township  twenty-five  (25)  South  of  Range 
thirteen  (13)  West  of  the  Willamette  Meridian, 
or  operated  in  connection  therewith — all  of  said 
property  above  conveyed  lying,  being  and  sit- 
uate in  Coos  County,  Oregon, — together  with 


TRUST  DEEDS  67 

all  betterments,  additions  and  improvements  of 
every  nature  and  description  hereafter  placed 
upon  said  premises,  and  used  or  intended  to 
be  used  in  connection  with  the  business  now  car- 
ried on  upon  said  premises;  but 

Excepting,  however,  from  this  conveyance 
the  coal  and  mineral  rights  in  said  lot  three  (3) 
in  said  Section  thirty- six  (36)  as  the  same  were 
reserved  in  the  deed  from  John  Norman  and 
wife  to  E.  B.  Dean  and  Company,  dated  October 
18, 1884,  and  recorded  at  page  441  in  Deed  Book 
13  in  the  oflfice  of  the  County  Clerk  in  Coos 
County,  Oregon; 

2.  Said  Linn  and  Lane  Timber  Company 
hereby  grants,  bargains,  sells,  aliens,  releases, 
transfers,  assigns,  conveys,  warrants  and  mort- 
gages unto  said  Trustees,  their  successors  and 
assigns,  with  full  subrogation  to  any  and  all 
warranties  or  rights  in  action  against  previous 
vendors  or  holders,  or  other  persons : 

First.     The  following  timber,  timber  rights, 
rights  of  way,  logging  rights,  privileges,  and 
other  rights,  in  Coos  County,  Oregon,  to  wit : 
(a)     All  the  merchantable   timber  lying, 
standing   or   being   upon   the   following   de- 
scribed lands : 

The  northeast  quarter  of  the  northeast 
quarter  or  lot  one  (1)  and  southeast  quarter 
of  northeast  quarter,  and  the  north  half  of 
the  southeast  quarter,  of  Section  eleven  (11) 
in  Township  twenty-nine  (29)  South  of 
Range  eleven  (11)  West  of  the  Willamette 


68  TIMBER  BONDS 

Meridian, — together  with  the  right  to  enter 
upon  said  land  and  cut  and  remove  the  said 
timber  therefrom  at  any  time  within  ten  (10) 
years  from  November  1,  1906, — also  hereby 
granting  the  right  to  cut  such  other  timber 
and  make  such  other  alterations  in  or  on  said 
land  as  may  be  required  in  the  cutting  and 
removal  of  said  timber;  and  all  timber  re- 
maining on  said  land  at  the  expiration  of  said 
term  of  ten  years  shall  revert  to  and  become 
the  property  of  the  persons  of  whom  it  was 
acquired  by  the  grantor  herein; 

(b)  Also  all  the  timber  standing  or  being 
on  the  south  half  of  the  northwest  quarter, 
and  the  northwest  quarter  of  the  southwest 
quarter  of  Section  twenty-three  (23)  in 
Township  twenty-nine  (29)  South  of  Range 
twelve  (12)  West  of  the  Willamette  Merid- 
ian,— together  with  all  rights  of  way  and 
privileges  necessary  in  the  removal  of  said 
timber,  also  the  right  to  enter  upon  said  land 
and  to  cut  and  remove  the  said  timber  there- 
from at  any  time  within  ten  (10)  years  from 
August  20,  1906;  and  time  being  of  the  es- 
sence of  the  contract  it  is  understood  and 
agreed  that  all  timber  standing,  lying  or  be- 
ing upon  said  lands  after  the  expiration  of 
said  ten  years  from  August  20,  1906,  shall 
revert  to  and  become  the  property  of  the 
persons  from  whom  the  grantor  herein  ac- 
quired the  same; 

(c)  Also  all  the  timber  lying,  standing  or 


TRUST  DEEDS  6» 

being  on  the  southeast  quarter  of  the  north- 
east quarter  and  the  northeast  quarter  of  the 
southeast  quarter  of  Section  thirty-four  (34) 
in  Township  twenty-nine  (29)  South  of 
Range  twelve  (12)  West  of  the  Willamette 
Meridian, — together  with  the  right  to  enter 
upon  said  land  and  to  cut  and  remove  the 
timber  therefrom  at  any  time  within  ten  (10) 
years  from  August  23,  1906;  all  timber  re- 
maining on  said  land  after  the  expiration  of 
said  ten  year  period  to  revert  to  and  become 
the  property  of  the  persons  from  whom  the 
grantor  herein  acquired  the  same. 

(d)  Also  all  the  merchantable  timber 
standing,  lying  or  being  on 

Lot  three  (3),  the  southwest  quarter  of  the 
northeast  quarter,  the  southeast  quarter  of 
the  northwest  quarter,  the  north  half  of  the 
southeast  quarter,  and  the  southwest  quarter 
of  the  southeast  quarter,  of  Section  Two  (2), 
in  Township  twenty-nine  (29)  South  of 
Range  thirteen  (13)  West  of  the  Willamette 
Meridian, — together  with  the  right  to  enter, 
cut  and  remove  the  same  at  any  time  within 
fifteen  (15)  years  from  March  6,  1907,  and 
together  with  all  necessary  and  desirable 
rights  of  way  for  the  removal  of  said  timber, 
including  rights  of  way  across  lot  two  (2)  of 
said  Section  two  (2) ;  and  time  being  of  the 
essence  of  this  agreement  all  timber  remain- 
ing on  the  said  lands  at  the  expiration  of  said 
fifteen  year  period,  shall  revert  to  and  be- 


70  TIMBER  BONDS 

come  the  property  of  the  persons  from  whom 
the  grantor  herein  acquired  the  same ; 

(e)  Also  all  the  timber  growing,  standing 
or  down,  on 

The  southeast  quarter  of  the  southeast 
quarter  of  Section  seventeen  (17) ;  the  east 
half  of  the  northeast  quarter,  the  east  half 
of  the  southeast  quarter,  and  the  southwest 
quarter  of  the  southeast  quarter  of  Section 
twenty  (20) ;  and  on  the  west  half  of  the  west 
half  of  the  northwest  quarter,  the  west  half 
of  the  northwest  quarter  of  the  southwest 
quarter,  and  the  south  half  of  the  southwest 
quarter  of  Section  twenty-one  (21),  in  Town- 
ship twenty-nine  (29)  South  of  Range  four- 
teen (14)  West  of  the  Willamette  Meridian; 
together  with  the  right  to  enter  upon  said 
land  and  cut  and  remove  the  said  timber  at 
any  time  within  twenty  (20)  years  from  Jan- 
uary 11,  1901;  all  timber  remaining  on  said 
land  after  the  expiration  of  the  said  period, 
to  revert  to  and  become  the  property  of  the 
persons  from  whom  the  grantor  herein  ac- 
quired the  same ; 

(f )  Also  all  of  the  timber  lying,  standing, 
growing,  or  being  upon  the 

South  half  of  the  north  half  of  Section 
fourteen  (14)  in  Township  thirty  (30)  South 
of  Range  ten  (10)  West  of  the  Willamette 
Meridian,  with  the  right  of  way  for  roads, 
railroads,  side  tracks,  skidding  roads,  and 
skid  ways,  said  cutting  and  carrying  away 


TRUST  DEEDS  71 

to  be  accomplished  within  sixteen  (16)  years 
from  September  20,  1901 ; 

(g)  Also  all  the  timber  lying,  standing  or 
being  on 

The  northwest  quarter  of  the  northwest 
quarter,  and  the  south  half  of  the  northwest 
quarter  of  Section  two  (2)  in  Township 
thirty  (30)  South  of  Range  eleven  (11)  West 
of  Willamette  Meridian, — together  with  the 
right  to  enter  upon  said  land  and  cut  and  re- 
move the  timber  therefrom  at  any  time  with- 
in fifteen  (15)  years  from  November  6,  1906; 
and  together  with  the  right  to  cut  such  other 
timber  and  make  such  other  alterations  on 
said  land  as  may  be  required  in  the  cutting 
and  removal  of  said  timber. 

All  of  the  property  in  this  clause  described 
lying,  being  and  situate  in  Coos  County,  State 
of  Oregon. 

Second.  The  following  timber,  timber  rights, 
rights  of  way,  logging  rights,  privileges,  and 
other  rights  in  Curry  County,  Oregon,  to  wit : 

(a)    All  the  cedar,  fir  and  oak  timber  on 

The  southwest  quarter,  of  the  southwest 
quarter  of  Section  twenty-five  (25) ;  the  south 
half  of  the  southeast  quarter  of  Section 
twenty-six  (26),  and  on  the  northeast  quarter 
of  the  northeast  quarter  of  Section  thirty- 
five  (35)  in  Township  thirty-two  (32)  South 
of  Range  fifteen  (15)  West  of  the  Willamette 
Meridian,  together  with  the  right  to  enter,  cut 
and  remove  said  timber  at  any  time  within 


72  TIMBER  BONDS 

ten  (10)  years  from  October  4,  1907,  and 
with  the  right  to  extend  this  period  for  re- 
moval to  twenty-five  (25)  years  from  October 
4,  1907,  upon  paying  $25.00  per  year  for  such 
extension ; 

(b)  Also  all  the  green  white  cedar  and 
green  fir  timber  on 

The  northwest  quarter  of  the  northeast 
quarter  of  Section  thirty-five  (35)  in  Town- 
ship thirty-two  (32)  South  of  Eange  Fifteen 
(15)  West  of  the  Willamette  Meridian,  to- 
gether with  the  right  to  enter,  cut  and  re- 
move the  said  timber  at  any  time  within 
twenty  (20)  years  from  October  4, 1907; 

(c)  Also  all  the  white  cedar  and  all  the 
fir  on 

The  south  half  of  the  northeast  quarter, 
and  the  southeast  quarter  of  the  northwest 
quarter  of  Section  thirty-five  (35)  in  Town- 
ship thirty- two  (32)  South  of  Eange  fifteen 
(15)  West  of  the  Willamette  Meridian, — to- 
gether with  the  right  to  enter,  cut  and  remove 
the  said  timber  at  any  time  within  twenty 
(20)  years  from  October  4,  1907; 

(d)  Also  all  the  timber,  lying,  standing,  or 
being  on 

The  northeast  quarter  of  the  southwest 
quarter,  the  north  half  of  the  southeast 
quarter,  and  the  southeast  quarter  of  the 
southeast  quarter  of  Section  thirty-five  (35) 
in  Township  thirty- two  (32)  South  of  Range 
fifteen  (15)  West  of  the  Willamette  Meridian, 


TRUST  DEEDS  73 

together  with  the  right  to  enter,  cut  and  re- 
move the  same  at  any  time  within  twenty  (20) 
years  from  October  4, 1907. 

All   of   said   property   in   this   clause  de- 
scribed  lying,   being   and   situate   in   Curry 
County,  State  of  Oregon. 
Third.    The  following  timber,  timber  rights, 
rights  of  way,  logging  rights,  privileges,  and 
other  rights  in  Douglas  County,  Oregon,  to  wit : 

(a)     All  the  timber  lying,  standing  or  be- 
ing on 

The  southwest  quarter  of  the  southwest 
quarter  of  Section  nine  (9) ;  the  south  half  of 
the  northwest  quarter  of  Section  fifteen  (15) ; 
the  northwest  quarter  of  the  northwest  quar- 
ter, the  east  half  of  the  northeast  quarter, 
the  northwest  quarter  of  the  northeast  quar- 
ter, and  the  northeast  quarter  of  the  north- 
west quarter  of  Section  sixteen  (16) ;  the  east 
half  of  the  northeast  quarter  and  the 
northeast  quarter  of  the  southeast  quar- 
ter of  Section  thirty- three  (33),  and  the 
northwest  quarter  of  the  southwest  quarter 
of  Section  thirty-four  (34)  in  Township 
twenty  (20)  South  of  Eange  eleven  (11) 
West  of  the  Willamette  Meridian, — together 
with  the  right  to  enter,  cut  and  remove  the 
same  at  any  time  within  thirty  (30)  years 
from  April  23,  1907,  together  with  the  exclu- 
sive use  of  said  premises  for  logging  pur- 
poses for  the  said  period  of  thirty  years ; 


74  TIMBER  BONDS 

(b)  Also  all  the  timber  lying,  standing 
or  being  on 

The  southwest  quarter  of  the  southwest 
quarter  of  the  southeast  quarter  of  Section 
Fifteen  (15) ;  the  south  half  of  the  southwest 
quarter,  the  northeast  quarter  of  the  south- 
east quarter,  and  the  south  half  of  the 
southeast  quarter  of  Section  sixteen  (16)  in 
Township  twenty-one  (21)  South  of  Range 
eleven  (11)  West  of  the  Willamette  Meridian, 
— together  with  the  right  to  enter,  cut  and 
remove  the  same  at  any  time  within  twenty 
(20)  years  from  April  18,  1907,  and  together 
with  the  exclusive  right  to  use  said  premises 
for  logging  purposes  for  the  said  period  of 
twenty  years; 

(c)  Also  all  the  timber  lying,  standing  or 
being  on 

The  west  half  of  the  northeast  quarter,  the 
southeast  quarter  of  the  northwest  quarter 
and  the  northeast  quarter  of  the  southwest 
quarter  of  Section  nine  (9)  in  Township  twen- 
ty-two (22)  South  of  Eange  eleven  (11)  West 
of  the  Willamette  Meridian, — together  with 
the  right  to  enter,  cut  and  remove  the  same  at 
any  time  within  thirty  (30)  years  from  June 
21, 1907,  and  together  with  the  exclusive  right 
to  use  said  premises  for  logging  purposes  for 
said  period  of  thirty  (30)  years; 

(d)  Also  all  the  timber  lying,  standing 
or  being  on 

Lot  seven  (7)  (or  southeast  quarter  of  the 


TRUST  DEEDS  75 

southeast  quarter),  and  the  southwest  quar- 
ter of  the  southwest  quarter  of  Sec- 
tion seventeen  (17) ;  tlie  south  half  of 
the  northeast  quarter,  lot  two  (2)  (or  the 
southeast  quarter  of  the  northwest  quarter), 
lots  three  (3)  and  four  (4)  (or  the  east  half 
of  the  southwest  quarter),  the  west  half  of 
the  southeast  quarter, and  the  northeast  quar- 
ter of  the  southeast  quarter  of  Section  eight- 
een (18) ;  lot  one  (1)  (or  the  northeast  quar- 
ter of  the  northeast  quarter),  the  northwest 
quarter  of  the  northeast  quarter,  the  north 
half  of  the  northwest  quarter,  and  the  south- 
east quarter  of  the  northwest  quarter  of  Sec- 
tion twenty  (20)  in  Township  twenty-two 
(22)  South  of  Eange  eleven  (11)  West  of  the 
Willamette  Meridian,  —  together  with  the 
right  to  enter,  cut  and  remove  the  same  at 
any  time  within  thirty  (30)  years  from  April 
17,  1907,  and  together  with  the  exclusive  use 
of  said  premises  for  said  period  of  thirty 
years ; 

(e)  Also  all  the  timber  lying,  standing 
or  being  on  the  south  half  of  the  north  half, 
and  the  south  half  of  Section  thirteen  (13) 
in  Township  twenty-two  (22)  South  of  Range 
twelve  (12)  West  of  the  Willamette  Meridian, 
— together  with  the  right  to  enter,  cut  and  re- 
move the  same  at  any  time  within  thirty  (30) 
years  from  April  4,  1907,  and  together  with 
the  exclusive  use  of  said  premises  for  log- 


76  TIMBER  BONDS 

ging  purposes  for  the  said  period  of  thirty 

(30)  years. 

All  of  the  property  in  this  clause  described 
lying,  being  and  situate  in  Douglas  County, 
State  of  Oregon. 

FouETH— LANDS  IN  COOS  COUNTY: 

All  the  following  lands  lying,  being  and  sit- 
uate in  Coos  County,  Oregon: 

Lands  in  Township  twenty-four  (24)  South, 
Range  eleven   (11)  West  of  the  Willamette 
Meridian,  described  as  follows: 
North  half  of   southwest  quarter   of   Section 

eleven  (11) 

Also,  lands  in  Township  twenty-five  (25) 
South,  Range  ten  (10)  West  of  the  Willa- 
mette Meridian,  described  as  follows: 
Northwest  quarter  of  Section  twenty-two. .  (22) 
East  half  of  northeast  quarter  of  Section 

thirty-four   (34) 

East  half  of  southeast  quarter  of  Section 

thirty-four   (34) 

Southwest  quarter  of  Section  thirty-four. .  (34) 
Also,  lands   in   Township    twenty-five 
(25)  South,  Range  eleven  (11)  West  of 
the  Willamette  Meridian,  described  as 
follows : 

Northeast  quarter  of  Section  fifteen (15) 

South  half  of  northwest  quarter  of  Section 

fifteen  (15) 

South  half  of  Section  fifteen (15) 

East  half  of  east  half  of  Section  sixteen. . .  (16) 


TRUST  DEEDS  77 

East  half  of  Section  twenty-one (21) 

North  half  of  northwest  quarter  of  Section 

twenty-two    (22) 

Southwest  quarter  of  southeast  quarter  of 

Section  twentj^-six (26) 

Northwest  quarter  of  northeast  quarter  of 

Section  thirty-five (35) 

East  half  of  northwest  quarter  of  Section 

thirty-five    (35) 

Also,  lands  in   Township   twenty-five 

(25)  South,  Range  twelve  (12)  West  of 

the   Willamette   Meridian,   described   as 
follows : 
Southeast  quarter  of  southwest  quarter  of 

Section  seven (  7) 

Southwest  quarter  of  southeast  quarter  of 

Section  seven (  7) 

Northwest  quarter  of  northeast  quarter  of 

Section  Eighteen (18) 

Northeast  quarter  of  northwest  quarter  of 

Section  eighteen (18) 

Also,   lands   in    Township   twenty- six 
.     (26)  South,  Range  nine  (9)  West  of  the 

Willamette  Meridian,  described  as  fol- 
lows: 
Lots  one  (1),  two  (2),  three  (3)  and  four 

(4)  of  Section  four (  4) 

South  half  of  northwest  quarter  of  Section 

four (  4) 

South  half  of  northeast  quarter  of  Section 

four (  4) 

Southeast  quarter  of  Section  four (  4) 


78  TIMBER  BONDS 

Lots  three  (3),  four  (4),  five  (5),  six  (6) 
and  seven  (7)  of  Section  six (  6) 

Southeast  quarter  of  northwest  quarter  of 
Section  six (  6) 

East  half  of  southwest  quarter  of  Section 
six (  6) 

Southeast  quarter  of  Section  six (  6) 

Also,    lands    in    Township  twenty-six 

(26)  South,  Range  ten  (10)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 

Southwest  quarter  of  Section  eight (  8) 

North  half  of  southeast  quarter  of  Section 

twenty    (20) 

Southeast  quarter  of  southeast  quarter  of 

Section  twenty (20) 

North  half  of  northeast  quarter  of  Section 

twenty-four (24) 

North  half  of  northwest  quarter  of  Section 

twenty-four  (24) 

North  half  of  southeast  quarter  of  Section 

twenty-four  (24) 

North  half  of  southwest  quarter  of  Section 

twenty-four  (24) 

Also,  lands  in  Township  twenty-seven 

(27)  South,  Range  ten  (10)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 

South  half  of  northwest  quarter  of  Section 
thirty-two    (32) 

North  half  of  southwest  quarter  of  Section 
thirty-two    (32) 


TRUST  DEEDS  79 

Also,  lands  in  Township  twenty-seven 

(27)  South,  Range  eleven  (11)  West  of 

the  Willamette  Meridian,   described  as 

follows : 
Lots  one  (1),  two  (2),  seven  (7)  and  eight 

(8)    of  Section  twenty-two (22) 

Lots   three    (3)    and  four   (4)    of  Section 

twenty-four  (24) 

Also,  lands  in  Township  twenty-seven 

(27)  South,  Range  twelve  (12)  West  of 

the  Willamette  Meridian,   described  as 

follows : 

North  half  of  Section  eight (  8) 

Southeast  quarter  of  Section  ten (10) 

Southeast  quarter  of  Section  sixteen (16) 

North  half  of  Section  twenty-two (22) 

Southwest  quarter  of  Section  twenty-two. .  (22) 
Also,  lands  in  Township  twenty-seven 

(27)  South,  Range  fourteen  (14)  West  of 

the  Willamette  Meridian,   described  as 

follows : 
Northwest  quarter  of  northeast  quarter  of 

Section  twenty (20) 

Lots  three    (3)    and  four    (4)    of  Section 

twenty    (20) 

Northeast  quarter  of  northeast  quarter  of 

Section  twenty-eight   (28) 

Northwest  quarter  of  northwest  quarter  of 

Section  twenty-eight   (28) 

South  half  of  northwest  quarter  of  Section 

twenty-eight   (28) 


80  TIMBER  BONDS 

East  half  of  southwest  quarter  of  Section 
twenty-eight   (28) 

Lots  one  (1)  and  two  (2)  of  Section  twen- 
ty-nine    (29) 

Lot  five  (5)  of  Section  thirty- three (33) 

Southeast  quarter  of  southeast  quarter  of 

Section  thirty-three   (33) 

Also,  lands  in  Township  twenty-eight 
(28)  South,  Range  ten  (10)  West  gf  the 
Willamette  Meridian,  described  as  fol- 
lows: 

Southwest  quarter  of  southeast  quarter  of 

Section  twenty-eight    (28) 

Also,  lands  in  Township  twenty-eight 
(28)  South,  Range  eleven  (11)  West  of 
the  Willamette  Meridian,  described  as 
follows : 

East  half  of  northeast  quarter  of  Section 

thirty   (30) 

Also,  lands  in  Township  twenty-eight 
(28)  South,  Range  twelve  (12)  West  of 
the  Willamette  Meridian,  described  as 
follows : 

Lots  one  (1)  and  two  (2)  of  Section  four. .  (  4) 

South  half  of  northeast  quarter  of  Section 
four    (4) 

Northwest  quarter  of  Section  ten (10) 

Lot    five    (5)    (or    northwest    quarter    of 
northwest  quarter)  of  Section  twentysix  (26) 

South  half  of  southwest  quarter  of  north- 
west quarter  of  Section  twenty-eight. . .  (28) 
Also,  lands  in  Township  twenty-nine 


TRUST  DEEDS  81 

(29)  South,  Range  ten  (10)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 

Lot  one   (1)   of  Section  four (  4) 

South  half  of  northeast  quarter  of  Section 

four    (4) 

Southeast  quarter  of  Section  four (  4) 

Also,  lands  in  Township  twenty-nine 
(29)  South,  Range  thirteen  (13)  West  of 
the  Willamette   Meridian,   described  as 
follows : 
Lots  four  (4)  and  five  (5)  of  Section  six. .(  6) 
Lots  six  (6)  and  seven  (7)  of  Section  six, .  (  6) 
Southeast  quarter  of  southwest  quarter  of 

Section  six  (  6) 

Also,  lands  in  Township  twenty-nine 
(29)  South,  Range  fourteen  (14)  West  of 
the  Willamette  Meridian,  described  as 
follows : 

Lot  one  (1)  of  Section  one (  1) 

Southeast  quarter  of  northeast  quarter  of 

Section   one    (  1) 

Northeast  quarter  of  southeast  quarter  of 

Section  one (  1) 

East  half  of  west  half  of  northwest  quarter 

of  Section  Twenty-one (21) 

East  half  of  northwest  quarter  of  south- 
west quarter  of  Section  twenty-one (21) 

Also,  lands  in    Township    thirty  (30) 
South,  Range  ten  (10)  West  of  the  Wil- 
lamette Meridian,  described  as  follows: 
Lots  two  (2)  and  three  (3)  of  Section  two. .  (  2) 


82  TIMBER  BONDS 

Northeast  quarter  of  northwest  quarter  of 

Section  fourteen  (14) 

Also,  lands  in  Township  thirty  (30) 
South,  Eange  eleven  (11)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows; 

North  half  of  north  half  of  northeast  quar- 
ter of  Section  two (  2) 

East  half  of  southwest  quarter  of  Section 
thirty   (30) 

West  half  of  southeast  quarter  of  Section 

thirty   (30) 

Also,  lands  in  Township  thirty  (30) 
South,  Range  twelve  (12)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 

Northwest  quarter  of  southeast  quarter  of 

Section  twenty    (20) 

Also,  lands  in  Township  thirty-one 
(31)  South,  Range  ten  (10)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 

North  half  and  southwest  quarter  of  Sec- 
tion fourteen   (14) 

Northwest  quarter  of  southeast  quarter  of 
Section  fourteen  (14) 

Northeast  quarter  of  northwest  quarter  of 
Section  twenty-four   (24) 

South  half  of  Section  twenty-four (24) 

Also,  lands  in  Township  thirty-one 
(31)  South,  Range  eleven  (11)  West  of 


TRUST  DEEDS  83 

the  Willamette  Meridian,   described  as 

follows : 
Northwest  quarter  of  northwest  quarter  of 

Section   twelve    (12) 

Southwest  quarter  of  Section  twelve (12) 

Northeast  quarter  of  Section  twenty-two. .  (22) 
Also,    lands    in    Township    thirty-one 

(31)  South,  Eange  twelve  (12)  West  of 

the  Willamette  Meridian,  descsibed   as 

follows : 
Lot  eleven  (11)   of  Section  twenty-four. .  (24) 

All  of  the  lands  in  this  clause  described  ly- 
ing, being  and  situate  in  Coos  County,  State 
of  Oregon. 

Fifth.  The  following  lands  lying,  being  and 
situate  in  either  Coos  or  Curry  County,  Oregon, 
in  whichever  of  said  counties  they  may  lie, 
to-wit  ; 

Lands    in    Township    thirty-one    (31) 

South,  of  Range  thirteen  (13)  West  of 

the  Willamette  Meridian,   described  as 

follows  : 
Northwest  quarter  of  Section  twelve (12) 

Sixth— LANDS  IN  CURRY  COUNTY: 

All  the  following  lands  lying,  being  and 
situate  in  Curry  County,  Oregon : 

Lands  in  Township  thirty-one  (31) 
South,  Range  thirteen  (13)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 


84  TIMBER  BONDS 

Southwest  quarter  of  southeast  quarter  of 

Section  three   

South  half  of  southwest  quarter  of  Sec- 
tion three   

Southeast  quarter  of  northeast  quarter  of 

Section   nine    

Southeast  quarter  of  southwest  quarter  of 

Section  seventeen  

Leis  two   (2),  three  (3)   and  four  (4)   of 

Section  nineteen   

Northeast  quarter  of  southwest  quarter  of 

Section  nineteen   

East  half  of  northwest  quarter  of  Section 

twenty    

Northwest  quarter  of  northeast  quarter  of 

Section  twenty    

Northeast  quarter  of  southwest  quarter  of 

Section  twenty    

Northwest  quarter   of   southwest  quarter 

of  Section  twenty-seven 

North  half  of  northwest  quarter  of  Section, 

twenty-seven  

Southwest  quarter  of  northwest  quarter  of 

Section  twenty-seven  

Southwest  quarter  of  northeast  quarter  of 

Section  thirty-one    

Southeast  quarter  of  Section  thirty-one . . 
Southeast  quarter  of  Section  thirty-two . . 
East  half  of  northeast  quarter  of  Section 

thirty- three   

South  half  of  northwest  quarter  of  Section 

thirty- three   


3) 
3) 
9) 

17) 
19) 
19) 
20) 
20) 
20) 
27) 
27) 
27) 

31) 

31) 
32) 

33) 

33) 


TRUST  DEEDS  85 

North  half  of  northwest  quarter  of  Section 

thirty-three   (33) 

Southeast  quarter  of  southeast  quarter  of 

Section  thirty-three   (33) 

Southeast  quarter  of  northwest  quarter  of 

Section  thirty-four  (34) 

Also,    lands    in    Township    thirty-one 

(31)   South,  Eange  fourteen  (14)   West 

of   the   Willamette   Meridian,   described 

as  follows : 
Southwest  quarter  of  southeast  quarter  of 

Section  twenty-four  (24) 

Northwest  quarter  of  northeast  quarter  of 

Section  twenty-five    (25) 

Northeast  quarter  of  northwest  quarter  of 

Section   twenty-five    (25) 

East  half  of  southwest  quarter  of  Section 

twenty-five    (25) 

Southeast  quarter  of  Section  twenty-five  (25) 
Also,    lands    in    Township    thirty-two 
(32)   South,  Eange  twelve  (12)  West 

of  the  Willamette  Meridian,  described  as 

follows : 
Southwest  quarter  of  northwest  quarter  of 

Section  five    (  5) 

Lot  one  (1)  of  Section  six (  6) 

Southeast  quarter  of  northeast  quarter  of 

Section  six   (  6) 

West  half  of  northeast  quarter  of  Section 

seven    (7) 

West  half  of  southeast  quarter  of  Section 

seven    (7) 


86  TIMBER  BONDS 

East  half  of  northwest  quarter  of  Section 

seven    (7) 

East  half  of  southwest  quarter  of  Section 

seven    (7) 

Lots  one  (1),  two  (2),  three  (3),  and  four 

(4)  of  Section  seven (  7) 

West  half  of  northeast  quarter  of  Section 

Eighteen    (18) 

East  half  of  northwest  quarter  of  Section 

Eighteen    (18) 

Lots  one  (1),  two  (2),  three  (3)  and  four 

(4)   of  Section  eighteen (18) 

East  half  of  southwest  quarter  of  Section 

eighteen  (18) 

West  half  of  southeast  quarter  of  Section 

eighteen  (18) 

Also,    lands    in    Township    thirty-two 

(32)  South,  Eange  thirteen  (13)  West  of 

the  Willamette   Meridian,   described  as 

follows : 
Northeast  quarter  of  southwest  quarter  of 

Section  two    (  2) 

Northwest  quarter  of  southeast  quarter  of 

Section  two    (  2) 

Lot  two  (2)  of  Section  three (  3) 

South  half  of  northeast  quarter  of  Section 

three (  3) 

Southwest  quarter  of  Section  three (  3) 

North  half  of  southeast  quarter  of  Section 

three (  3) 

Southeast  quarter  of  northeast  quarter  of 

Section  eleven (11) 


TRUST  DEEDS  87 

Northeast  quarter  of  southwest  quarter  of 

Section  eleven   (11) 

South  half  of  southwest  quarter  of  Section 

eleven (11) 

Northeast  quarter  of  southeast  quarter  of 

Section  eleven   (11) 

Northwest  quarter  of  southeast  quarter  of 

Section  eleven   (11) 

South  half  of  southeast  quarter  of  Section 

eleven (11) 

Entire  Section  twelve   (12) 

Entire  Section  thirteen   (13) 

Entire  Section  fourteen   (14) 

Northeast  quarter  of  Section  fifteen (15) 

South  half  of  northwest  quarter  of  Section 

fifteen (15) 

South  half  of  southwest  quarter  of  Section 

fifteen (15) 

Southeast  quarter  of  Section  fifteen (15) 

North  half  of  Section  twenty-four (24) 

Also,    lands    in    Township    thirty-two 

(32)  South,  Range  fourteen  (14)  West  of 

the  Willamette  Meridian,   described  as 

follows : 
Lots  five  (5),  six  (6)  and  seven  (7)  of  Sec- 
tion two (2) 

Lots  ten  (10),  eleven  (11)  and  twelve  (12) 

of  Section  two (  2) 

Southwest  quarter  of  Section  two (  2) 

West  half  of  southeast  quarter  of  Section 

two    , (  2) 


88  TIMBER  BONDS 

Lots  five  (5),  six  (6)  and  seven  (7)  of  Sec- 
tion three   (  3) 

Lots  eight  (8),  nine  (9)  and  ten  (10)  of 
Section  three  (  3) 

Southeast  quarter  of  Section  three (  3) 

North  half  of  southwest  quarter  of  Section 
four (4) 

East  half  of  southeast  quarter  of  Section 
five    (  5) 

Lots  one  (1)  and  two  (2)  (or  southeast 
quarter  of  northeast  quarter)  of  Section 
ten    (10) 

Northwest  quarter  of  southeast  quarter  of 
Section  ten  (10) 

Southwest  quarter  of  northeast  quarter  of 
Section  eleven   (11) 

Lots  one  (1)  and  two  (2)  (or  south  half  of 
northwest  quarter)   of  Section  eleven.. (11) 

Also,  lands  in  Township  thirty-two 
(32)  South,  Range  fifteen  (15)  West  of 
the  Willamette  Meridian,  described  as 
follows : 

Northeast  quarter  of  northwest  quarter  of 
Section  four  (  4) 

South  half  of  northwest  quarter  of  Section 

four    (  4) 

All  the  lands  in  this  clause  described  lying, 

being  and  situate  in  Curry  County,  Oregon. 

Seventh— LANDS  IN  DOUGLAS  COUNTY: 

All  the  following  lands  lying,  being  and  sit- 
uate in  Douglas  County,  Oregon :    . 


TRUST  DEEDS  89 

Lands  in  Township  twenty  (20)  South, 
Eange  seven  (7)  West  of  the  Willamette 
Meridian,  described  as  follows: 

Southeast  quarter  of  Section  six (  6) 

Also,  lands  in  Township  twenty  (20) 
South,  Range  nine  (9)  West  of  the  Wil- 
lamette Meridian,  described  as  follows: 
Lots   three    (3)    and  four   (4)    of  Section 

two    (  2) 

South  half  of  northwest  quarter  of  Sec- 
tion  two    (  2) 

North  half  of  southwest  quarter  of  Section 

two    (  2) 

Southeast  quarter  of  southwest  quarter  of 

Section  two    (  2) 

Southeast  quarter  of  Section  two (  2) 

Southwest  quarter  of  Section  twenty-five. .  (25) 
Also,  lands  in  Township  twenty  (20) 
South,  Range  ten  (10)  West  of  the  Wil- 
lamette Meridian,  described  as  follows: 
Lots  five  (5),  six  (6),  seven  (7)  and  eight 

(8)   of  Section  three (  3) 

Lots  nine  (9),  ten   (10),  eleven   (11)   and 

twelve   (12)   of  Section  three (  3) 

South  half  of  Section  three (  3) 

West  half  of  Section  ten (10) 

Northwest  quarter  of  Section  eleven (11) 

Southwest  quarter  of  Section  twenty-one. .  (21) 

West  half  of  Section  twenty- two (22) 

Northwest  quarter  of  southwest  quarter  of 

Section  thirty-six   (36) 

Lot  six  (6)  of  Section  thirty-six (36) 


90  TIMBER  BONDS 

Also,  lands  in  Township  twenty  (20) 
South,  Range  eleven  (11)  West  of  the 
"Willamette  Meridian,  described  as  fol- 
lows: 

Southwest  quarter  of  Section  fifteen (15) 

Southeast  quarter  of  northeast  quarter  of 
Section  twenty    (20) 

Northwest  quarter  of  Section  twenty-one. .  (21) 

Northeast  quarter  of  southwest  quarter  of 
Section  twenty-one  (21) 

West  half  of  southwest  quarter  of  Section 
twenty-one    (21) 

West  half  of  northeast  quarter  of  Section 
twenty-two    (22) 

North  half  of  northwest  quarter  of  Section 
twenty-two    (22) 

South  half  of  Section  thirty-two (32) 

Southwest  quarter  of  Section  thirty-three.  (33) 
Also,  lands   in  Township   twenty-one 
(21)  South,  Range  seven  (7)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 

Lots  one  (1),  two  (2),  three  (3),  and  four 
(4)  of  Section  two  (  2) 

Lots  five  (5),  eleven  (11)  and  twelve  (12) 
of  Section  two    (  2) 

Northeast  quarter  of  Section  twenty-eight.  (28) 
Also,   lands   in  Township   twenty-one 
(21)  South,  Range  nine  (9)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 


TRUST  DEEDS  91 

Lots    one    (1)    and    two    (2)    of    Section 

twelve    (12) 

West  half  of  northeast  quarter  of  Section 

twelve (12) 

Southwest  quarter  of  Section  twelve (12) 

West  half  of  northeast  quarter  of  Section 

fourteen (14) 

West  half  of  southeast  quarter  of  Section 

fourteen (14) 

East  half  of  northwest  quarter  of  Section 

fourteen (14) 

East  half  of  southwest  quarter  of  Section 

fourteen (14) 

West  half  of  Section  sixteen (16) 

Also,   lands  in   Township  twenty-one 

(21)  South,  Range  eleven  (11)  West  of 

the  Willamette  Meridian,  described    as 

follows : 
Lots  one  (1)  and  two  (2)  of  Section  five. .  (  5) 
Southeast  quarter  of  northeast  quarter  of 

Section  five (  5) 

Lot  one  (1)  of  Section  six (  6) 

Southeast  quarter  of  Section  six (  6) 

Northeast  quarter  of  northeast  quarter  of 

Section  eight  (  8) 

West  half  of  southwest  quarter  of  Section 

eight (  8) 

Southwest  quarter  of  southeast  quarter  of 

Section  eight   (  8) 

Northwest  quarter  of  northeast  quarter  of 

Section  nine  (  9) 


92  TIMBER  BONDS 

East  half  of  northwest  quarter  of  Section 
nine    (9) 

East  half  of  southwest  quarter  of  Section 
ten   (10) 

West  half  of  southeast  quarter  of  Section 
ten (10) 

Southeast  quarter  of  northeast  quarter  of 

Section  sixteen   (16) 

Also,  lands  in  Township  twenty-two 
(22)  South,  Eange  seven  (7)  West  of 
the  Willamette  Meridian,  described  as 
follows : 

Lots  three  (3)  and  four  (4)  (or  north  half 
of  northwest  quarter)  of  Section  six. ...  (  6) 

South  half  of  northwest  quarter  of  Section 
six (  6) 

Southwest  quarter  of  Section  six (  6) 

Also,  lands  in  Township  twenty-two 
(22)  South,  Range  eight  (8)  West  of 
the  Willamette  Meridian,  described  as 
follows : 

Northeast  quarter  of  northeast  quarter  of 
Section  thirty-two (32) 

South  half  of  northeast  quarter  of  Section 
thirty-two    (32) 

Northeast  quarter  of  southwest  quarter  of 
Section  thirty-two (32) 

Southeast  quarter  of  Section  thirty-two. .  (32) 
Also,  lands  in   Township  twenty-two 
(22)  South,  Range  nine  (9)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows : 


TRUST  DEEDS  98 

Lots  three   (3),  four  (4)   and  five   (5)   of 

Section  four (  4) 

Lots  six  (6)  and  seven  (7)  of  Section  four.  (  4) 
East  half  of  southwest  quarter  of  Section 

four    (  4) 

Lots  one  (1),  two  (2),  three  (3)  and  four 

(4)  (or  north  half  of  north  half)  of  Sec- 
tion ten   (10) 

Lot   five    (5)    (or    southwest    quarter    of 

northwest  quarter)  of  Section  ten (10)  . 

Lot    ten    (10)     (or    southeast    quarter    of 

northeast  quarter)  of  Section  ten (10) 

Southwest  quarter  of  northeast  quarter  of 

Section  ten  (10) 

Southeast  quarter  of  northwest  quarter  of 

Section  ten  (10) 

Northeast  quarter  of  Section  twenty (20) 

Southeast  quarter  of  Section  twenty-four.  (24) 
Northwest    quarter    of    Section    twenty- 
eight  (28) 

Northwest  quarter  of  southwest  quarter  of 

Section  twenty-eight   (28) 

Lots  four  (4),  five  (5),  six  (6)  and  seven 

(7)  of  Section  twenty-eight (28) 

Also,  lands  in   Township  twenty-two 

(22)  South,  Eange  eleven  (11)  West  of 

the  Willamette   Meridian,  described  as 

follows : 
Southwest  quarter  of  northeast  quarter  of 

Section  six  (  6) 

Lots  four  (4)  and  five  (5)  of  Section  six. .(  6) 


94  TIMBER  BONDS 

Northwest  quarter  of  southeast  quarter  of 
Section  six   (  6) 

North  half  of  southeast  quarter  of  Section 
seven    (7) 

Lot  six  (6)  of  Section  seven (  7) 

Lots  one  (1)  and  two  (2)  of  Section  eight.  (  8) 

West  half  of  northeast  quarter  of  Section 
eight (  8) 

Lot  seven  (7)  of  Section  eight (  8) 

Also,  lands  in    Township    twenty-two 

(22)  South,  Range  twelve  (12)  "West  of 
the  Willamette  Meridian,  described  as 
follows : 

North  half  of  northeast  quarter  of  Section 

twenty-three  (23) 

Also,  lands  in  Township  twenty-three 

(23)  South,  Range  nine  (9)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 

Lots  five  (5)  and  six  (6)  of  Section  six. ...  (  6) 
Also,  lands  in  Township  Twenty-four 

(24)  South,  Range  seven  (7)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 

Southwest  quarter  of  northwest  quarter  of 
Section  twenty-four   (24) 

Northeast  quarter  of  southwest  quarter  of 
Section  twenty-four   (24) 

West  half  of  southwest  quarter  of  Section 

twenty-four (24) 

Also,  lands  in  Township  twenty-four 


TRUST  DEEDS  95 

(24)  South,  Range  eight  (8)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 

Southeast  quarter  of  Section  two (  2) 

Northwest  quarter  of  Section  fourteen. . . .  (14) 

West  half  of  west  half  of  Section  twenty- 
six    (26) 

Also,  lands  in  Township  twenty-five  (25) 
South,  Eange  eight  (8)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 

Northeast  quarter  of  northwest  quarter  of 
Section  twelve   (12) 

West  half  of  northwest  quarter  of  Section 
twelve    (12) 

Northwest  quarter  of  southwest  quarter  of 
Section  twelve   (12) 

South  half  of  southwest  quarter  of  Section 
twelve   (12) 

South  half  of  southeast  quarter  of  Section 
twelve (12) 

Northeast  quarter  of  Section  twenty-eight.  (28) 
Also,  lands    in    Township    twenty-six 
(26)  South,  Range  eight  (8)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 

Southwest  quarter  of  northeast  quarter  of 
Section  eight   (  8) 

North  half  of  northwest  quarter  of  Section 
eight (8) 

Southeast  quarter  of  northwest  quarter  of 
Section  eight   (  8) 


96  TIMBER  BONDS 

Northeast  quarter  of  southwest  quarter  of 
Section  eight   (  8) 

North  half  of  southeast  quarter  of  Section 
eight (8) 

Southeast  quarter  of  southeast  quarter  of 
Section  eight   (  8) 

South  half  of  northwest  quarter  of  Section 
thirty-two    (32) 

North  half  of  southwest  quarter  of  Section 

thirty-two    (32) 

Also,  lands    in    Township    twenty-six 

(26)  South,  Eange  nine  (9)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 

Southwest  quarter  of  Section  two (  2) 

Northwest  quarter  of  Section  twelve (12) 

North  half  of  southwest  quarter  of  Section 

twelve   (12) 

South  half  of  northeast  quarter  of  Section 

fourteen    (14) 

Southeast  quarter  of  northwest  quarter  of 

Section  fourteen  (14) 

Northeast  quarter  of  southwest  quarter  of 

Section  fourteen   (14) 

Northeast  quarter  of  Section  twenty- two.  (22) 
Also,  lands  in  Township  twenty-seven 

(27)  South,  Eange  seven  (7)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 

Lots  one  (1),  two  (2),  three  (3)  and  four 
(4)   of  Section  six  (  6) 


TRUST  DEEDS  97 

Lots  five  (5),  six  (6)  and  seven  (7)  of  Sec- 
tion six   (  6) 

South  half  of  northeast  quarter  of  Section 
six    (  6) 

Southeast  quarter  of  northwest  quarter  of 
Section  six  (  6) 

East  half  of  southwest  quarter  of  Section 
six (  6) 

Southeast  quarter  of  Section  six (  6) 

Lots  one  (1),  two  (2),  three  (3)  and  four 
(4)  of  Section  eighteen (18) 

East  half  of  northwest  quarter  of  Section 
eighteen    (18) 

East  half  of  southwest  quarter  of  Section 

eighteen    (18) 

Also,  lands  in  Township  twenty-seven 
27)  South,  Range  eight  (8)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 

Northeast  quarter  of  Section  eight (  8) 

West  half  of  northwest  quarter  of  Section 
eight    (  8) 

Entire  Section  twelve (12) 

Entire  Section  fourteen (14) 

Northeast  quarter  of  northeast  quarter  of 
Section  twenty-two  (22) 

South  half  of  northeast  quarter  of  Section 
twenty-two    (22) 

Entire  Section  twenty-four   (24) 

Also,  lands  in  Township  thirty  (30) 
South,  Range  nine  (9)  West  of  Willa- 
mette Meridian,  described  as  follows: 


98  TIMBER  BONDS 

Southwest  quarter  of  northwest  quarter  of 
Section  fourteen  (14) 

Northwest  quarter  of  northeast  quarter  of 
Section  seventeen  (17) 

North  half  of  northwest  quarter  of  Section 
eighteen  (17) 

North  half  of  northeast  quarter  of  Section 

eighteen  (18) 

Also,  lands  in  Township  thirty-one 
(31)  South,  Range  eight  (8)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 

Lots  three  (3),  four  (4),  nine  (9)  and  ten 

(10)  of  Section  eighteen (18) 

Also,  lands  in  Township  thirty-one 
(31)  South,  Range  nine  (9)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 

West  half  of  northeast  quarter  of  Section 
eighteen    (18) 

East  half  of  northwest  quarter  of  Section 
eighteen (18) 

Lots   one    (1)    and   two    (2)    of    Section 

eighteen    ( 18) 

All  the  lands  in  this  clause  described  lying, 

being  and  situate  in  Douglas  County,  Oregon. 

Eighth— LANDS  IN  LANE  COUNTY: 
All  the  following  lands  lying,  being  and  sit- 
uate in  Lane  County,  Oregon : 

Lands  in  Township  fifteen  (15)  South, 
Range  three  (3)  East  of  the  Willamette 
Meridian,  described  as  follows: 


TRUST  DEEDS  99 

South  half  of  southwest  quarter  of  Secti©n 

thirty-five  (35) 

Also,  lands  in  Township  twenty-three 
(23)  South,  Range  one  (1)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows : 

Northeast  quarter  of  Section  eighteen. ...  (18) 
All  the  lands  in  this  clause  described  lying, 

being  and  situate  in  Lane  County,  Oregon. 
Ninth.     The    following   lands    lying,    being 

and  situate  in    either  Lane  or    Linn  County, 

Oregon,  in  whichever  of  said  counties  they  may 

lie,  to  wit : 

Lands  in  Township  fifteen  (15)  South 
of  Range  three  (3)  East  of  the  Willa- 
mette Meridian,  described  as  follows: 

Southeast  quarter  of  northwest  quarter  of 
Section  thirty-five (35) 

Tenth— LANDS   IN  LINCOLN  COUNTY: 

All  the  following  lands  lying,  being  and  sit- 
uate in  Lincoln  County,  Oregon : 

Lands    in    Township    fourteen     (14) 
South,  Range  eleven   (11)   West  of  the 
Willamette  Meridian,    described  as  fol- 
lows: 
Lots  nineteen    (19),    twenty-one  (21)  and 

twenty-two  (22)  of  Section  six (  6) 

East  half  of  southwest  quarter  of  Section 

six    (  6) 

Southeast  quarter  of  Section  six (  6) 

Also,  lands  in  Township  fourteen  (14) 


100  TIMBER  BONDS 

South,  Range  twelve  (12)  West  of  the 
Willamette  Meridian,  described  as  fol- 
lows: 

Lots  sixteen   (16)   and    seventeen   (17)   of 
Section  one  (  1) 

Lots  eighteen  (18)    and   nineteen  (19)  of 
Section  one (  1) 

North  half  of  southwest  quarter  of  Section 
one    (  1) 

Southeast  quarter  of  Section  one (  1) 

Lots  twelve  (12),  thirteen  (13)  and  four- 
teen (14)  of  Section  two (  2) 

West  half  of  northeast  quarter  of  Section 
twelve (12) 

Northwest  quarter  of  southwest  quarter  of 
Section  twelve  (12) 

Southeast  quarter  of  northeast  quarter  of 
Section  twenty-three   (23) 

East  half  of  southwest  quarter  of  Section 
twenty-three  (23) 

Entire  Section  twenty-five  (25) 

All  the  lands  in  this  clause  described  lying, 

being  and  situate  in  Lincoln  County,  Oregon. 

Eleventh— LANDS  IN  LINN  COUNTY: 

All  the  following  lands  lying,  being  and  sit- 
uate in  Linn  County,  Oregon : 

Lands  in  Township  twelve  (12)  South, 

Range  two  (2)  East  of  the  Willamette 

Meridian,  described  as  follows: 
East  half  of  northeast  quarter  of  Section 

sixteen    (16) 


TRUST  DEEDS  101 

East  half  of  southeast  quarter  of  Section 

sixteen    (16) 

Also,  lands  in  Township  twelve  (12) 
South,  Range  three  (3)  East  of  the  Wil- 
lamette Meridian,  described  as  follows: 

Entire  Section  sixteen (16) 

North  half  of  northeast  quarter  of  Section 
thirty-three (33) 

Northwest  quarter  of  northwest  quarter  of 
Section  thirty-four  (34) 

Southeast  quarter  of  northwest  quarter  of 
Section  thirty-four (34) 

Northwest  quarter  of  southwest  quarter  of 
Section  thirty-four  (34) 

Northeast  quarter  of  Section  thirty-six. . .  (36) 

Northeast  quarter  of  northwest  quarter  of 
Section  thirty-six   (36) 

South  half  of  northwest  quarter  of  Section 
thirty-six    (36) 

South  half  of  Section  thirty-six (36) 

Also,  lands  in  Township  twelve  (12) 
South,  Range  four  (4)  East  of  the  Willa- 
mette Meridian,  described  as  follows : 

Entire  Section  thirty-six (36) 

Also,  lands  in  Township  thirteen  (13) 
South,  Range  one  (1)  East  of  the  Willa- 
mette Meridian,  described  as  follows: 

Southeast  quarter  of  northeast  quarter  of 
Section  two    (  2) 

Northeast  quarter  of  Section  ten (10) 

Southwest  quarter  of  Section  ten (10) 


102  TIMBER  BONDS 

West  half  of  southeast  quarter  of  Section 

ten   (10) 

Southeast  quarter  of  southeast  quarter  of 

Section  ten  (10) 

North  half  of  northeast  quarter  of  Section 

fourteen    (14) 

Southeast  quarter  of  northeast  quarter  of 

Section  fourteen   (14) 

East  half  of  southeast  quarter  of  Section 

fourteen    (14) 

North  half  of  southwest  quarter  of  Section 

sixteen   (16) 

South  half  of  northeast  quarter  of  Section 

thirty-six (36) 

South  half  of  northwest  quarter  of  Section 

thirty-six    (36) 

Also,  lands  in  Township  thirteen  (13) 

South,  Eange  two  (2)  East  of  the  Willa- 
mette Meridian,  described  as  follows: 
South  half  of  southeast  quarter  of  Section 

two    (  2) 

Southwest  quarter  of  Section  four (  4) 

South  half  of  northeast  quarter  of  Section 

six    (  6) 

Lot  seven  (7)  of  Section  six (  6) 

Southeast  quarter  of  southwest  quarter  of 

Section  six  (  6) 

Southeast  quarter  of  Section  six (  6) 

North  half  of  northeast  quarter  of  Section 

eight (8) 

North  half  of  northwest  quarter  of  Section 

eight (8) 


TRUST  DEEDS  103 

Southwest  quarter  of  Northwest  quarter  of 

Section  eight   (  8) 

East  half  of  southeast  quarter  of  Section 

eight (8) 

North  half  of  northeast  quarter  of  Section 

fourteen    (14) 

North  half  of  northwest  quarter  of  Section 

fourteen    (14) 

Southwest  quarter  of  northeast  quarter  of 

Section  fourteen  (14) 

Southeast  quarter  of  northwest  quarter  of 

Section  fourteen  (14) 

North  half  of  southwest  quarter  of  Section 

fourteen    (14) 

Southeast  quarter  of  Section  fourteen. . . .  (14) 
North  half  of  northeast  quarter  of  Section 

twenty    ...(20) 

North  half  of  northwest  quarter  of  Section 

twenty   (20) 

Southeast  quarter  of  southeast  quarter  of 

Section  twenty-six   (26) 

Southwest  quarter  of  southwest  quarter  of 

Section  twenty-six   (26) 

West  half  of  northeast  quarter  of  Section 

twenty-eight  (28) 

East  half  of  northwest  quarter  of  Section 

twenty-eight  (28) 

Northeast  quarter  of  southwest  quarter  of 

Section  twenty-eight   (28) 

West  half  of  southeast  quarter  of  Section 

twenty  eight   (28) 

Northeast  quarter  of  Section  thirty (30) 


104  TIMBER  BONDS 

West  half  of  northwest  quarter  of  Section 

thirty-two    (32) 

North  half  of  southwest  quarter  of  Section 


thirty-two   

Southwest  quarter  of  Section  thirty-four . . 
South  half  of  southeast  quarter  of  Section 

thirty-four   

Northeast  quarter  of  Section  thirty-six. . . 
Also,  lands  in  Township  thirteen  (13) 

South,  Eange  three  (3)  East  of  the  Wil- 
lamette Meridian,  described  as  follows : 
Lots  one  (1)  and  two  (2)  of  Section  two. . 
South  half  of  northeast  quarter  of  Section 

two   

Lot  four  (4)  of  Section  two 

South  half  of  northwest  quarter  of  Section 

two   

West  half  of  southwest  quarter  of  Section 

two   

Southeast  quarter  of  southwest  quarter  of 

Section  two    

Northeast  quarter  of  southeast  quarter  of 

Section  two 

South  half  of  southeast  quarter  of  Section 

two   

Northeast  quarter  of  southeast  quarter  of 

Section  four  

South  half  of  southeast  quarter  of  Section 

four  

Northwest  quarter  of  northeast  quarter  of 

Section  eight   


32) 
34) 

34) 
36) 


2) 

2) 
2) 

2) 

2) 

2) 

2) 

2) 

4) 

4) 

8) 


TRUST  DEEDS  105 

Southeast  quarter  of  northeast  quarter  of 

Section  eight   (  8) 

Southeast  quarter  of  northwest  quarter  of 

Section  eight   (  8) 

Northeast  quarter  of  southwest  quarter  of 

Section  eight   (  8) 

South  half  of  southwest  quarter  of  Section 

eight    (  8) 

Southwest  quarter  of  southeast  quarter  of 

Section  eight   (  8) 

Southwest  quarter  of  northwest  quarter  of 

Section  nine  (  9) 

West  half  of  southwest  quarter  of  Section 

nine   (9) 

North  half  of  northeast  quarter  of  Section 

ten  (10) 

East  half  of  northwest  quarter  of  Section 

ten   (10) 

Southwest  quarter  of  Section  ten (10) 

Southeast  quarter  of  southeast  quarter  of 

Section  ten  (10) 

North  half  of  northeast  quarter  of  Section 

twelve   (12) 

East  half  of  northwest  quarter  of  Section 

twelve   (12) 

Northeast  quarter  of  southwest  quarter  of 

Section  twelve  (12) 

North  half  of  Section  sixteen (16) 

Southwest  quarter  of  Section  sixteen (16) 

North  half  of  southeast  quarter  of  Section 

sixteen   (16) 


106  TIMBER  BONDS 

West  half  of  northeast  quarter  of  Section 

eighteen    (18) 

Northeast  quarter  of  northwest  quarter  of 

Section  eighteen   (18) 

Lot  two  (2)  of  Section  eighteen (18) 

Southeast  quarter  of  northwest  quarter  of 

Section  eighteen   (18) 

Lot  three  (3)  of  Section  eighteen (18) 

Southwest  quarter  of  northwest  quarter  of 

Section  thirty-four  (34) 

Southeast  quarter  of  southeast  quarter  of 

Section  thirty-four   (34) 

Also,  lands  in  Township  thirteen  (13) 

South,  Range  four  (4)  East  of  the  Willa- 
mette Meridian,  described  as  follows : 
Lots  one  (1),  two  (2),  three  (3)  and  four 

(4)  of  Section  one  (  1) 

Southeast  quarter  of  northeast  quarter  of 

Section  one (  1) 

Southwest  quarter  of  Section  one (  1) 

Northeast  quarter  of  southeast  quarter  of 

Section  one (  1) 

South  half  of  southeast  quarter  of  Section 

one    (1) 

Southwest  quarter  of  Section  two (  2) 

Lots  three  (3),   four  (4)  and   five  (5)  of 

Section  six  (  6) 

Southeast  quarter  of  northwest  quarter  of 

Section  six   (  6) 

Lots  six  (6)  and  seven  (7)  of  Section  six. .  (  6) 
East  half  of  southwest  quarter  of  Section 

six (  6) 


TRUST  DEEDS  107 

East  half  of  uortlieast  quarter  of  Section 
twelve (12) 

Northwest  quarter  of  Section  twelve (12) 

East  half  of  southeast  quarter  of  Section 
twelve    (12) 

Entire  Section  sixteen (16) 

Northeast  quarter  of  northwest  quarter  of 
Section  twenty-three    (23) 

South  half  of  northwest  quarter  of  Section 
twenty-three  (23) 

Northwest  quarter  of  southwest  quarter  of 

Section  twenty-three (23) 

Also,  lands  in  Township  fourteen  (14) 
South,  Kange  one  (1)  East  of  the  Wil- 
lamette Meridian,  described  as  follows: 

Lots  three  (3)  and  four  (4)  of  Section  two.  (  2) 

East  half  of  southwest  quarter  of  Section 
two    (  2) 

Northwest  quarter  of  southeast  quarter  of 
Section  two   (  2) 

South  half  of  southeast  quarter  of  Section 
two    (2) 

Northeast  quarter  of  northwest  quarter  of 
Section  twelve  (12) 

Southwest  quarter  of  northwest  quarter  of 
Section  twelve  (12) 

East  half  of  southeast  quarter   of   north- 
west quarter  of  Section  twelve (12) 

North  half  of  northeast  quarter  of  Section 
fourteen (14) 


108  TIMBER  BONDS 

Southeast  quarter  of  northeast  quarter  of 
Section  fourteen  

North  half  of  southeast  quarter  of  Section 
fourteen 

Southwest  quarter  of  northwest  quarter  of 
Section  nineteen   

Northwest  quarter  of  Section  twenty-two. 

Southeast  quarter  of  Section  twenty-two . . 

Southeast  quarter  of  Section  twenty-four. 

Northeast  quarter  of  northeast  quarter  of 
Section  twenty-six   

West  half  of  northeast  quarter  of  Section 
twenty-six  

Southwest  quarter  of  Section  twenty-six . . 
Also,  lands  in  Township  fourteen  (14) 
South,  Range  two  (2)  East  of  the  Wil- 
lamette Meridian,  described  as  follows : 

Lots  one  (1)  and  two  (2)  of  Section  four. . 

South  half  of  northeast  quarter  of  Section 
four  

North  half  of  Lot  three  (3)  of  Section  four. 

North  half  of  Lot  four  (4)  of  Section  four. 

West  half  of  south  half  of  Lot  four  of  Sec- 
tion four  

West  half  of  southwest  quarter  of  north- 
west quarter  of  Section  four 

Northwest  quarter  of  southwest  quarter  of 
Section  four  

Lots  one  (1)  and  two  (2)  of  Section  six. . . . 

South  half  of  northeast  quarter  of  Section 
six  

Lot  three  (3)  of  Section  six 


14) 
14) 

19) 

22) 
22) 
24) 

26) 

26) 
26) 


4) 

4) 
4) 
4) 

4) 

4) 

4) 
6) 

6) 
6) 


TRUST  DEEDS  109 

Southeast  quarter  of  northwest  quarter  of 
Section  six  (  6) 

Lots  six  (6)  and  seven  (7)  of  Section  six. .  (  6) 

Southeast  quarter  of  southwest  quarter  of 
Section  six   (  6) 

Northeast  quarter  of  southeast  quarter  of 
Section  six   (  6) 

South  half  of  southeast  quarter  of  Section 
six    (  6) 

Northwest  quarter  of  northeast  quarter  of 
Section  eight   (  8) 

North  half  of  northwest  quarter  of  Section 
eight (8) 

North  half  of  southwest  quarter  of  north- 
west quarter  of  Section  eight (  8) 

Southwest  quarter  of  southwest  quarter  of 
northwest  quarter  of  Section  eight (  8) 

North  half  of  southeast  quarter  of  north- 
west quarter  of  Section  eight (  8) 

North  half  of  northeast  quarter  of  south- 
west quarter  of  Section  eight (  8) 

"West  half  of  southwest  quarter  of  Section 
eight (8) 

South  half  of  southeast  quarter  of  south- 
west quarter  of  Section  eight (  8) 

Lot  three  (3)  of  Section  ten (10) 

Lots  one  (1)  and  two  (2)  of  Section  twelve.  (12) 

South  half  of  northeast  quarter  of  Section 
twelve   ( 12 ) 

Lots  three  (3)  and  four    (4)    of    Section 
twelve (12) 


110  TIMBER  BONDS 

Southeast  quarter  of  northwest  quarter  of 

Section  twelve  (12) 

North  half  of  southeast  quarter  of  Section 

twelve   (12) 

East  half  of  southeast  quarter  of  Section 

fourteen (14) 

Lots  three  (3)  and  four  (4)  of  Section  six- 
teen    (16) 

Southwest  quarter  of  northwest  quarter  of 

Section  sixteen (16) 

South  half  of  southwest  quarter  of  Section 

sixteen   (16) 

South  half  of  southeast  quarter  of  Section 

sixteen   (16) 

Northeast  quarter  of  southwest  quarter  of 

Section  eighteen   (18) 

Southeast  quarter  of  southeast  quarter  of 

Section  eighteen   (18) 

North  half  of  northeast  quarter  of  Section 

twenty-two    (22) 

Southeast  quarter  of  northeast  quarter  of 

Section  twenty-two  (22) 

Northwest  quarter  of  Section  twenty-two.  (22) 
Southeast  quarter  of  Section  twenty- two.  (22) 
Northwest  quarter  of  Section  twenty-six. .  (26) 

North  half  of  Section  twenty-eight (28) 

Southeast  quarter  of  Section  twenty-eight.  (28) 

Northeast  quarter  of  Section  thirty (30) 

Lots  three  (3)   and  four    (4)    of    Section 

thirty   (30) 

East  half  of  southwest  quarter  of  Section 

thirty    (30) 


TRUST  DEEDS  111 


Southeast  quarter  of  Section  thirty 

Northwest  quarter  of  Section  thirty- two . . 
Also,  lands  in  Township  fourteen  (14) 

South,  Range  three  (3)  East  of  the  Wil- 
lamette Meridian,  described  as  follows: 

Lot  four  (4)  of  Section  two 

South  half  of  northwest  quarter  of  Section 

two   

East  half  of  southeast  quarter  of  Section 

two    

Lot  two   (2)   and  south  half  of  northeast 

quarter  of  Section  four 

Lots  three  (3)  and  four    (4)    of    Section 

four  

South  half  of  northwest  quarter  of  Section 

four  

West  half  of  southwest  quarter  of  Section 

four  

Southeast  quarter  of  southwest  quarter  of 

Section  four 

Southeast  quarter  of  Section  four 

Lot  one  (1)  and  south   half  of   northeast 

quarter  of  Section  six 

Lots  four  (4)  and  five  (5)  of  Section  six. 
Southeast  quarter  of  northwest  quarter  of 

Section  six   

Lots  six  (6)  and  seven  (7)  of  Section  six. 
Northeast  quarter  of  southwest  quarter  of 

Section  six  

Northeast  quarter  of  southeast  quarter  of 

Section  six   


30) 

32) 


2) 

2) 

2) 

4) 

4) 

4) 

4) 

4) 
4) 

6) 
6) 

6) 
6) 

6) 

6) 


112  TIMBER  BONDS 

South  half  of  southeast  quarter  of  Section 

six (  6) 

Southwest  quarter  of  northeast  quarter  of 

Section  eight   (  8) 

West  half  of  northwest  quarter  of  Section 

eight (8) 

Southeast  quarter  of  northwest  quarter  of 

Section  eight   (  8) 

North  half  of  southwest  quarter  of  Section 

eight (8) 

Southwest  quarter  of  southwest  quarter  of 

Section  eight   (  8) 

Southeast  quarter  of  Section  eight (  8) 

West  half  of  Section  ten (10) 

Southwest  quarter  of  northeast  quarter  of 

Section  eleven  (11) 

Northwest  quarter  of  southeast  quarter  of 

Section  eleven  (11) 

Southeast  quarter  of  southeast  quarter  of 

Section  eleven  (11) 

South  half  of  northeast  quarter  of  Section 

twelve (12) 

East  half  of  northwest  quarter  of  Section 

twelve (12) 

East  half  of  southwest  quarter  of  Section 

twelve (12) 

Northeast  quarter  of  southeast  quarter  of 

Section  twelve (12) 

Southwest  quarter  of  southeast  quarter  of 

Section  twelve  (12) 

Entire  Section  sixteen (16) 


TRUST  DEEDS  113 

North  half  of  northeast  quarter  of  Section 

seventeen (17) 

Southeast  quarter  of  northeast  quarter  of 

Section  eighteen  (18) 

Lot  four  (4)  of  Section  eighteen (18) 

Southeast  quarter  of  Section  eighteen. ...  (18) 

Southwest  quarter  of  Section  twenty (20) 

Southeast  quarter  of  Section  twenty-six. .  (26) 

Entire  Section  thirty-six (36) 

Also,  lands  in  Township  fourten  (14) 

South,  Range  four  (4)  East  of  the  Wil- 
lamette Meridian,  described  as  follows: 
Southeast  quarter  of  southeast  quarter  of 

Section  seven (  7) 

North  half  of  southwest  quarter  of  Section 

eight (8) 

Southeast  quarter  of  southeast  quarter  of 

Section  eight   (  8) 

South  half  of  northwest  quarter  of  Section 

fifteen (15) 

Entire  Section  sixteen (16) 

Northeast  quarter  of  southeast  quarter  of 

Section  seventeen  (17) 

Southeast  quarter  of  northeast  quarter  of 

Section  eighteen (18) 

Southwest  quarter  of  southwest  quarter  of 

Section  twenty (20) 

Southeast  quarter  of  southwest  quarter  of 

Section  twenty-two (22) 

Northwest  quarter  of  northeast  quarter  of 

Section  twenty-four  (24) 


114  TIMBER  BONDS 

Northwest  quarter  of  northwest  quarter  of 
Section  twenty-four (24) 

Northwest  quarter  of  southwest  quarter  of 
Section  twenty-four (24) 

Southeast  quarter  of  southwest  quarter  of 
Section  twenty-four (24) 

Southeast  quarter  of  Section  twenty-four.  (24) 

Northwest  quarter  of  northeast  quarter  of 
Section  twenty-five (25) 

Northeast  quarter  of  northwest  quarter  of 
Section  twenty-five (25) 

Northeast  quarter  of  northeast  quarter  of 
Section  twenty-nine   (29) 

South  half  of  northeast  quarter  of  Section 
twenty-nine    (29) 

East  half  of  west  half  of  Section  twenty- 
nine   (29) 

West  half  of  southeast  quarter  of  Section 
twenty-nine    (29) 

Northwest  quarter  of  northeast  quarter  of 

Section  thirtj^-two (32) 

Also,  lands  in  Township  fifteen  (15) 
South,  Range  three  (3)  East  of  the  Wil- 
lamette Meridian,  described  as  follows: 

Lots  one  (1),  two  (2),  three  (3),  and  four 
(4)  of  Section  one (  1) 

Lots  five  (5),  six  (6),  seven  (7),  and  eight 
(8)  of  Section  one  (  1) 

Lots  nine  (9),  ten  (10),    eleven    (11)  and 
twelve  (12)  of  Section  one (  1) 

Lots  thirteen  (13),    fourteen  (14),  fifteen 
(15)  and  sixteen  (16)  of  Section  one.  . . .  (  1) 


TRUST  DEEDS 


115 


South  half  of  Section  one 

Lots  one  (1),  two  (2),  three  (3)  and  four 

(4)  of  Section  two  

Lots  five  (5),  six  (6),  seven  (7)  and  eight 

(8)  of  Section  two  

Lots  nine   (9),  ten   (10),  eleven   (11)   and 

twelve   (12)   of  Section  two    

Lots  thirteen  (13)  and  sixteen  (16)  of  Sec- 
tion two 

West  half  of  southwest  quarter  of  Section 

two   

Southeast  quarter  of  southwest  quarter  of 

Section  two    

South  half  of  southeast  quarter  of  Section 

two   

Lots  one  (1),  two  (2),  three  (3)  and  four 

(4)  of  Section  three 

Lots  five  (5),  six  (6),  seven  (7)  and  eight 

(8)  of  Section  three 

Lots  nine  (9),  ten  (10),    eleven  (11)  and 

twelve  (12)  of  Section  three 

Lots  thirteen   (13),  fourteen   (14),  fifteen 

(15),  and  sixteen  (16)  of  Section  three. 

South  half  of  Section  three 

Lots  one  (1),  two  (2),  three  (3)  and  four 

(4)  of  Section  four 

Lots  five  (5),  six  (6),  seven  (7)  and  eight 

(8)  of  Section  four 

Lots  nine  (9),  ten  (10),   eleven    (11)  and 

twelve  (12)  of  Section  four 

Lots  thirteen  (13),    fourteen    (14),  fifteen 

(15)  and  sixteen  (16)  of  Section  four. . . . 


1) 

2) 

2) 

2) 

2) 

2) 

2) 

2) 

3) 

3) 

3) 

3) 
3) 

4) 

4) 
4) 
4) 


116  TIMBER  BONDS 

South  half  of  Section  four (  4) 

Lots  one  (1),  two  (2),  three  (3)  and  four 

(4)  of  Section  five  (  5) 

Lots  five  (5),  six  (6),  seven  (7)  and  eight 

(8)  of  Section  five (  5) 

Lots  nine  (9),  ten    (10),  eleven    (11)  and 

twelve  (12)  of  Section  five (  5) 

Lots  thirteen   (13),  fourteen   (14),  fifteen 

(15)  and  sixteen  (16)  of  Section  five..(  5) 

South  half  of  Section  five (  5) 

Lots  one  (1),  two  (2),  three  (3)  and  four 

(4)  of  Section  six (  6) 

Lots  five  (5),  six  (6),  seven  (7)  and  eight 

(8)  of  Section  six (  6) 

Lots  nine    (9),  ten  (10),    eleven  (11)  and 

twelve  (12)  of  Section  Six (6) 

Lots  thirteen   (13)   and    fourteen  (14)   of 

Section  six  (  6) 

East  half  of  southwest  quarter  of  Section 

six (  6) 

Southeast  quarter  of  Section  six (  6) 

Entire  Section  eight (8) 

Entire  Section  nine (  9) 

Entire  Section  ten (10) 

Entire  Section  eleven (11) 

Entire  Section  twelve (12) 

Entire  Section  thirteen (13) 

Entire  Section  fourteen (14) 

Entire  Section  fifteen   (15) 

East  half  of  Section  seventeen (17) 

Northeast  quarter  of  Section  eighteen. . , .  (18) 


TRUST  DEEDS  117 

Lots    one    (1)    and    two    (2)    of    Section 

eighteen (18) 

East  half  of  northwest  quarter  of  Section 

eighteen (18) 

Lots  three  (3)    and    four    (4)   of  Section 

eighteen (18) 

East  half  of  southwest  quarter  of  Section 

eighteen (18) 

Southeast  quarter  of  Section  eighteen.  . . .  (18)* 

Northeast  quarter  of  Section  twenty (20) 

North  half  of  northwest  quarter  of  Section 

twenty (20) 

East  half  of  northeast  quarter  of  Section 

twenty-one  (21) 

Northwest  quarter  of  Section  twenty-one. .  (21) 
North  half  of  southwest  quarter  of  Section 

twenty-one   (21) 

Southeast  quarter  of  southwest  quarter  of 

Section  twenty-one    (21) 

East  half  of  southeast  quarter  of  Section 

twenty-one   (21) 

North  half  of  northeast  quarter  of  Section 

twenty-two  (22) 

North  half  of  Section  twenty-three (23) 

Northwest  quarter  of  Section  twenty-four.  (24) 
West  half  of  southeast  quarter  of  Section 

twenty-five (25) 

Southeast  quarter  of  southeast  quarter  of 

Section  twenty-five  (25) 

Southwest  quarter  of  northeast  quarter  of 

Section  twenty-seven   (27) 


118  TIMBER  BONDS 

North  half  of  northwest  quarter  of  Section 

twenty-seven (27) 

Southeast  quarter  of  northwest  quarter  of 

Section  twenty-seven  (27) 

Southwest  quarter  of  southwest  quarter  of 

Section  twenty-seven  (27) 

Southwest  quarter  of  southeast  quarter  of 

Section  twenty-seven  (27) 

Southwest  quarter  of  northeast  quarter  of 

Section  twenty-eight   (28) 

South  half  of  northwest  quarter  of  Section 

•    twenty-eight   (28) 

South  half  of  Section  twenty-eight (28) 

Northeast  quarter  of  Section  thirty (30) 

Lots  one  (1)  and  two  (2)  of  Section  thirty.  (30) 
East  half  of  northwest  quarter  of  Section 

thirty   (30) 

Lots  three   (3)   and    four   (4)   of    Section 

thirty   (30) 

East  half  of  southwest  quarter  of  Section 

thirty   (30) 

Southeast  quarter  of  Section  thirty (30) 

North  half  of  northeast  quarter  of  Section 

thirty-three    (33) 

West  half  of  northeast  quarter  of  Section 

thirty-four   (34) 

Northwest  quarter  of  Section  thirty-four.  (34) 
North  half  of  northeast  quarter  of  Section 

thirty-five    (35) 

North  half  of  northwest  quarter  of  Section 

thirty-five    (35) 


TRUST  DEEDS  119 

All  of  the  lands  in  this  clause  described  ly- 
ing, being  and  situate  in  Linn  County,  Oregon ; 

Together  with  the  buildings,  machinery,  rail- 
road tracks,  cars,  and  locomotives  now  or  here- 
after placed  upon  said  premises  in  any  of  the 
said  eleven  clauses  described,  or  upon  any  por- 
tion thereof. 

To  HAVE  AND  TO  HOLD  all  and  singular  the 
above  described  property  and  rights,  together 
^vith  all  the  rights,  title  and  interest  thereunto 
belonging,  and  all  the  privileges  and  appur- 
tenances thereunto  appertaining,  together  with 
all  other  property  which  by  the  terms  hereof 
may  become  subject  to  this  instrument,  unto 
the  said  Union  Trust  Company  and  the  said 
Frederick  H.  Rawson,  Trustees,  their  suc- 
cessors in  trust,  and  their  assigns  in  fee  simple 
forever.  And  the  parties  of  the  first  and  sec- 
ond parts.  Grantors  herein,  covenant  that  they 
are  respectively  seized  and  possessed  of  the 
property  above  described  and  conveyed  by  them 
respectively;  that  the  same  is  unencumbered 
and  that  they  have  a  good  right  to  convey  it; 
and  they  respectively  warrant  to  forever  de- 
fend the  title  thereto  unto  the  said  Trustees, 
their  successors  and  assigns,  against  the  lawful 
claims  of  all  persons  whomsoever. 

In  trust  nevertheless  for  the  purpose  of  se- 
curing the  prompt  and  punctual  payment  of  all 
and  every  of  the  bonds  above  described  and  of 
the  interest  coupons  thereto  attached,  without 
preference  or  priority  of  one  bond  over  an- 


120  TIMBER  BONDS 

other,  or  of  bonds  over  coupons,  or  of  coupons 
over  bonds,  with  the  same  effect  as  if  all  of  said 
bonds  matured  upon  the  same  date,  and  regard- 
less of  the  date  or  time  of  the  issue  or  negotia- 
tion thereof;  and  subject  to  the  following  pro- 
visions, restrictions  and  conditions,  to  wit : 


ARTICLE  I. 

All  of  the  bonds  issued  and  certified  here- 
under shall  stand  upon  equality  without  re- 
gard to  date  of  issue,  certification  or  delivery. 
Only  such  bonds  as  shall  bear  thereon  endorsed 
the  certificate  of  the  Corporation  Trustee  or 
its  successor  hereunder,  by  it  duly  executed, 
shall  be  valid  or  obligatory  for  any  purpose  or 
shall  be  secured  by  this  instrument  or  entitled 
to  any  lien  or  benefit  hereunder,  and  every  such 
certificate  of  said  Corporation  Trustee  upon 
any  bond  executed  in  behalf  of  the  Company 
shall  be  the  only  and  conclusive  evidence  that 
the  bond  so  certified  has  been  duly  issued  here- 
under and  is  entitled  to  the  benefit  of  the  trust 
hereby  created  and  no  holder  of  any  bond  is- 
sued hereunder  which  shall  be  so  certified  by 
said  Corporation  Trustee  shall  be  under  a  duty 
to  ascertain  whether  the  same  shall  have  been 
duly  issued,  certified  and  delivered,  according 
to  the  provisions  hereof. 

The  entire  issue  of  said  bonds  shall  be  ex- 
ecuted by  the  Company  and  at  once  certified 
and  delivered  by  said  Union  Trust  Company  to 


TRUST  DEEDS  121 

the  President  of  the  Compauy  or  to  such  per- 
son or  persons  as  the  Board  of  Directors  of 
the  Company  by  its  resolution  may  designate. 

Upon  certifying  or  delivering  any  bond  under 
this  mortgage  or  deed  of  trust  all  coupons 
thereon  then  matured  shall  be  detached  and 
cancelled  by  the  Corporation  Trustee  and  by 
the  Corporation  Trustee  delivered  to  the  Com- 
pany. 

In  case  the  officers  who  shall  have  signed  and 
sealed  any  of  the  bonds  aforesaid  shall  cease  to 
be  such  officers  of  the  Company  before  the 
bonds  so  signed  and  sealed  shall  have  been 
actually  certified  and  delivered  by  the  Corpora- 
tion Trustee,  or  issued,  such  bonds  may  never- 
theless be  issued,  certified  and  delivered  as 
though  the  persons  who  had  signed  and  sealed 
such  bonds  had  not  ceased  to  be  officers  of  said 
Company. 

Interest  coupons  shall  be  authenticated  by 
the  engraved  fac-simile  signature  of  the  present 
Treasurer  of  the  Company,  and  the  Company 
may  adopt  and  use  said  coupons,  notwithstand- 
ing the  fact  that  the  present  Treasurer  may 
have  ceased  to  hold  such  office  at  the  time  when 
said  bonds,  or  some  portion  thereof,  shall  be 
actually  certified  and  delivered. 

The  Trustee  shall  not  be  bound  to  see  to  the 
application,  use  or  disposition  of  any  of  the 
bonds  secured  hereby,  or  of  the  proceeds 
thereof. 


122  TIMBER  BONDS 

ARTICLE  II. 

In  case  any  bond  issued  under  this  instru- 
ment or  the  coupons  thereto  appertaining,  shall 
become  mutilated,  lost  or  destroyed,  the  Com- 
pany in  its  discretion  may  issue  and  thereupon 
the  Corporation  Trustee  shall  certify  and  de- 
liver a  new  bond  of  like  date,  tenor  and  amount, 
bearing  the  same  number  as  the  one  mutilated, 
lost  or  destroyed,  in  exchange  for  and  in  place 
of  and  upon  the  cancellation  of  the  mutilated 
bond  or  coupons,  or  in  lieu  of  and  substitution 
for  the  same,  if  lost  or  destroyed.  In  such 
ease  the  applicant  for  such  new  or  substituted 
bond  shall  bear  the  expense  of  furnishing  the 
same. 

The  Company  shall  not  be  required  to  issue 
nor  the  Corporation  Trustee  to  certify  a  new 
bond  in  lieu  of  any  bond  alleged  to  have  been 
lost  or  destroyed  unless  the  applicant  for  such 
new  bond  shall  first  furnish  evidence  of  such 
loss  or  destruction,  and  indemnity  against  its 
subsequent  presentation  as  an  obligation  of  the 
Company,  which  evidence  and  indemnity  shall 
be  satisfactory  to  both  the  Company  and  the 
Corporation  Trustee,  in  their  discretion. 

ARTICLE  III. 

Any  bond  secured  hereby  shall  pass  by  de- 
livery unless  registered,  but  it  may  be  regis- 
tered as  to  principal  in  the  holder's  name  on  the 


TRUST  DEEDS  122 

books  of  the  Corporation  Trustee,  at  its  office 
in  the  City  of  Chicago,  Illinois,  such  registry 
being  noted  on  the  bond  by  said  Registrar,  after 
which  only  such  registered  holder,  or  the  legal 
representative  of  such  holder,  shall  be  entitled 
to  receive  the  principal  thereof;  and  no  trans- 
fer shall  be  valid  unless  made  on  said  Corpora- 
tion Trustee's  books  by  the  registered  holder 
of  the  bond  in  person  or  by  the  legal  repre- 
sentative of  such  holder  and  similarly  noted  on 
the  bond ;  but  the  bond  may  be  discharged  from 
registry  by  registration  to  bearer,  after  which 
it  shall  be  transferable  by  delivery.  It  may  be 
registered  again,  however,  in  the  manner  above 
provided. 

The  registry  of  any  bond  shall  not  impair  the 
negotiability  of  the  coupons,  but  the  same  shall 
continue  to  be  transferable  by  delivery  not- 
withstanding such  registration. 

ARTICLE  IV. 

Linn  and  Lane  Timber  Company  agrees  and 
covenants  that  it  will  duly  and  punctually  pay, 
or  cause  to  be  paid,  to  every  holder  of  any  bond 
issued  hereunder,  and  secured  hereby,  the  prin- 
cipal and  interest  accrued  thereon,  all  in  gold 
coin  of  the  United  States  of  America  of  the 
standard  of  weight  and  fineness  existing  on  the 
sixth  day  of  June,  1910,  notwithstanding  anj'' 
law  which  may  now  or  hereafter  make  any- 
thing else  a  legal  tender  in  payment  of  debts, 


124  TIMBER  BONDS 

at  the  dates  and  place,  and  in  the  manner  men- 
tioned in  said  bonds  or  in  ihe  coupons  there- 
to appertaining,  according  to  the  true  intent 
and  meaning  thereof,  and  without  deduction 
from  either  the  principal  or  interest  for  any 
tax,  or  taxes,  or  assessments,  or  other  govern- 
mental charges  which  may  be  imposed  thereon, 
or  which  the  Company  may  be  required  or  per- 
mitted to  pay  or  to  deduct  or  retain  therefrom 
under  or  by  reason  of  any  present  or  future 
law  of  the  United  States,  or  of  any  state,  county 
or  municipality  thereunder. 

However,  the  interest  on  said  bonds  shall  be 
payable  only  upon  the  presentation  and  sur- 
render of  the  respective  coupons  annexed  to 
said  bonds,  as  such  coupons  respectively  mature 
and  when  and  as  paid  all  the  coupons  shall 
forthwith  be  cancelled  and  delivered  to  the 
Company. 

And  the  Company  agrees  promptly,  and  in 
time  to  prevent  any  sale  or  forfeiture  of  the 
mortgaged  premises  or  any  part  of  the  same 
on  account  thereof,  whether  hereby  conveyed 
by  it,  or  by  the  Lumber  and  Manufacturing- 
Company,  to  pay,  or  cause  to  be  paid,  all  taxes, 
assessments  and  governmental  charges  which 
shall  from  time  to  time  be  legally  imposed,  as- 
sessed or  levied,  upon  or  against  the  property 
hereby  conveyed,  or  upon  any  part  thereof, 
whether  hereby  conveyed  hy  the  Company  or 
by  the  Lumber  and  Manufacturing  Company,  or 
upon  the  profits  or  income  thereof;  and  to  pay 


TRUST  DEEDS  125 

or  cause  to  be  paid  any  judgment  or  other  en- 
cumbrance, the  lien  whereof  might  be  held  su- 
perior to  the  lien  of  these  presents,  upon  the 
property  hereby  conveyed  by  either  of  the 
Grantors,  or  upon  any  part  thereof,  so  that  the 
priority  of  these  presents  shall  at  all  times  be 
fully  maintained  and  preserved;  provided, 
however,  that  the  Company  may,  with  the  con- 
sent of  the  Corporation  Trustee  thereto  first 
had  and  obtained  in  writing,  resist  in  any  legal 
way  the  payment  of  any  tax,  assessment  or 
charge  upon  said  property  hereby  conveyed,  or 
any  part  thereof,  which  tlie  Company  may  deem 
unjust,  illegal  or  unauthorized.  And  the  Com- 
pany agrees  to  do  on  demand  of  the  said  Trus- 
tee, or  its  successors,  all  acts  necessary  or 
proper  to  keep  valid  the  lien  hereby  created  or 
intended  to  be  created ;  and  at  any  future  time 
and  as  often  as  it  may  be  necessary  to  execute 
or  cause  to  be  executed  on  demand  of  said  Trus- 
tee, or  its  successors,  all  such  other  and  addi- 
tional deeds,  mortgages,  or  other  instruments 
in  writing,  in  due  form  and  effect,  as  may  be 
proper  to  the  better  carrying  out  of  the  true 
intent  and  meaning  of  these  presents. 

And  the  Company  further  covenants  and 
agrees  that  it  will  not  cut  nor  permit  to  be  cut 
any  timber  from  the  premises  hereunder  mort- 
gaged, nor  any  timber  hereunder  mortgaged, 
nor  extract  anything  from  or  deaden  the  said 
timber,  or  any  portion  thereof,  nor  permit  the 
same  to  be  done,  nor  permit  any  waste  or  other 


126  TIMBER  BONDS 

change  in  the  property  hereby  mortgaged,  ex- 
cept as  is  herein  otherwise  expressly  provided, 
but  that  it  will  diligently  preserve  and  protect 
the  same. 

In  case  the  Company  shall  fail  to  promptly 
pay  or  cause  to  be  paid  any  tax,  assessment  or 
other  charge  as  provided  for  herein,  either  of 
the  Trustees  may  pay  the  same  (but  shall  not 
be  under  any  obligation  whatsoever  so  to  do), 
in  which  event  such  Trustee  shall  be  subro- 
gated, either  with  or  without  an  act,  writing  or 
other  instrument  to  that  effect,  to  the  rights 
and  demands  of  the  State,  County,  City,  Town 
or  other  municipality,  as  the  case  may  be ;  and 
in  addition  thereto  the  amount  thus  expended, 
together  with  interest  thereon  at  the  rate  of  six 
per  centum  per  annum  shall  be  a  charge  on  the 
property  hereby  conveyed  prior  to  the  lien  of 
the  bonds  hereby  secured. 

C.  A.  Smith  Lumber  and  Manufacturing 
Company  covenants  that  its  lumber  mill  plant, 
equipment  and  appurtenances,  and  its  logging 
apparatus  and  plant  will  be  kept  in  repair  and 
maintained  in  good  working  order  and  condi- 
tion, and  if  worn  out  or  injured  will  be  replaced 
by  other  property  suitable  to  the  business  for 
which  it  is  now  used,  and  of  at  least  equal  value, 
and  that  such  lumber  mill  plant,  equipment  and 
appurtenances,  and  such  logging  apparatus  and 
plant  shall  not  be  removed  from  the  mortgaged 
premises  without  the  consent  of  the  Trustees 
hereunder. 


TRUST  DEEDS  127 

ARTICLE  V. 

The  Company  agrees  that  it  will,  at  all  times 
during  the  existence  of  any  of  the  indebtedness 
secured  hereby,  keep  or  cause  to  be  kept  in- 
sured by  the  Grantor  owning  the  same,  against 
loss  by  fire  or  cyclone,  all  of  the  buildings  now 
on  any  portion  of  the  property  hereby  mort- 
gaged or  which  may  hereafter  be  erected  there- 
on, and  all  the  machinery,  equipment  and  ap- 
paratus used  or  provided  for  use  in  connection 
with  said  lumber  mill  plant  and  equipment  that 
are  usually  insured  by  companies  or  persons 
engaged  in  like  business  and  in  the  same  man- 
ner, and  to  the  same  extent  (but  in  an  amount 
not  less  than  Seventy-five  Thousand  (75,000) 
Dollars),  and  shall  cause  such  insurance  to  be 
made  payable  in  case  of  loss  to  the  Trustees 
hereunder  or  their  successors,  by  proper  stipu- 
lations in  the  face  of  the  policies  therefor. 

In  case  of  loss  or  damage  to  any  property 
covered  by  such  insurance  policies  the  Trus- 
tees may  allow  the  amount  of  the  insurance 
money  received  from  said  policies  on  account 
of  such  loss  to  be  applied  toward  the  replace- 
ment of,  or  addition  to  the  property  destroyed 
or  damaged,  if  the  Company  shall  in  writing  so 
request.  In  such  case  the  Trustees,  shall  from 
time  to  time  pay  to  the  Company  or  to  the  Lum- 
ber and  Manufacturing  Company  as  such  writ- 
ten request  may  indicate,  any  or  all  of  the  pro- 
ceeds of  such  insurance  money  so  collected  or 


128  TIMBER  BONDS 

received;  but  no  such,  payment  shall  be  made 
until  and  unless  the  Trustees  shall  iBrst  be  fur- 
nished with  a  statement  or  statements  verified 
by  the  affidavits  of  the  President  or  Vice-Presi- 
dent of  the  Company  or  of  the  Lumber  and 
Manufacturing  Company  as  the  case  may  be, 
showing  that  such  Company  has  theretofore 
made  actual  expenditures  to  an  amount  equal 
to  or  greater  than  the  amount  of  insurance 
money  sought  to  be  thus  obtained  from  the  Trus- 
tees, in  or  about  the  repair  or  the  replacement 
of  the  property  damaged  or  destroyed  for  or 
on  account  of  which  such  insurance  money  was 
collected;  and  all  such  repairs  or  replacements 
shall  be  and  become  subject  to  the  lien  of  this 
instrument  in  like  manner  and  to  the  same  ex- 
tent as  was  the  property  damaged  or  destroyed. 
The  Trustees  shall  not  be  compelled  to  act  upon 
such  affidavits,  but  should  they  deem  proper 
they  may  before  making  such  payments  of  in- 
surance money  make  or  cause  to  be  made  such 
further  investigation  with  reference  to  such  ex- 
penditures, repairs  or  replacements,  as  they 
see  fit. 

But  if  within  ninety  days  from  the  time  of 
the  collection  of  the  proceeds  of  any  such  in- 
surance policy  the  Company  shall  not  in  writ- 
ing request  the  Trustees  to  hold  such  proceeds 
for  the  purpose  of  applying  the  same  on  such 
repairs  or  replacements,  then  the  said  sums  so 
collected  shall  be  credited  to  and  become  a  part 
of  the  fund  held  by  the  Corporation  Trustee 


TRUST  DEEDS  129 

for  the  purpose  of  retiring  bonds  hereby  se- 
cured, as  is  provided  in  Article  VII  and  other 
Articles  hereof. 

Likewise  shall  all  surplus  monies  be  so  ap- 
plied in  case  the  cost  of  repairs  or  replace- 
ments shall  not  equal  the  total  amount  of  the 
proceeds  collected  from  such  insurance  policies. 

In  case  of  loss  covered  by  any  policy  of  in- 
surance, any  appraisement  or  adjustment  of 
such  loss,  and  settlement  and  payment  of  in- 
demnity therefor,  which  may  be  agreed  upon 
between  the  Grantors  or  either  of  them  and 
any  insurance  company,  may  be  consented  to 
and  accepted  by  the  Trustees. 

The  Trustees  shall  be  in  no  way  liable  or  re- 
sponsible for  a  failure  to  collect  any  insurance 
money  that  may  become  due  them  under  the 
provisions  hereof,  or  of  the  policies  above  re- 
ferred to,  but  only  for  such  amounts  as  may 
come  into  their  hands  as  the  proceeds  of  such 
policies. 

The  Company  further  covenants  and  agrees 
that  until  all  and  singular  the  bonds  and  cou- 
pons hereby  secured  shall  be  paid  and  dis- 
charged and  until  this  instrument  is  duly  re- 
leased as  herein  provided,  it  shall  take,  or  cause 
to  be  taken,  all  reasonable  precaution  to  pre- 
vent damage  to,  or  destruction  by  fire  of  the 
timber  hereby  conveyed,  including  the  timber 
upon  the  lands  hereby  conveyed,  and  to  that 
end  it  covenants  and  agrees  during  the  period 
last  aforesaid,  from  time  to  time,  to  institute 


130  TIMBER  BONDS 

and  maintain  such  system  of  fire  protection 
either  on  its  own  account  or  jointly  or  in  as- 
sociation with  other  land  owners  as  shall  from 
time  to  time  be  prescribed  by  the  Trustees  with 
the  approval  of  Lyon,  Gary  &  Company,  an 
Illinois  Corporation,  provided,  however,  that 
the  Company  shall  not  be  obligated  to  observe 
and  perform  the  requirements  so  prescribed  by 
said  Trustees,  approved  as  aforesaid,  to  an 
extent  which  will  involve  in  any  one  year  the 
expenditure  by  the  Company  of  an  amount  of 
money  in  excess  of  three  thousand  dollars. 

AETICLE  VI. 

In  order  to  prevent  any  accumulation  of 
bonds  or  coupons  after  their  maturity,  the 
Company  covenants  and  agrees  that  it  will  not 
directly  or  indirectly  extend  or  assent  to  the 
extension  of  the  time  for  payment  of  any  of  the 
bonds  or  of  any  coupons  of  any  of  the  bonds 
secured  hereby,  by  purchase  or  funding  of 
such  bonds  or  coupons  or  by  any  other  ar- 
rangement. In  case  the  time  for  payment  of 
any  such  bond  or  coupon  shall  be  so  extended, 
whether  or  not  such  extension  be  with  or  by 
the  consent  of  the  Company,  such  bond  or  cou- 
pon shall  not  be  entitled,  in  case  of  any  default 
hereunder,  to  the  benefit  or  security  of  this 
mortgage,  except  subject  to  the  prior  pajonent 
in  full  of  the  principal  of  all  bonds  issued  here- 
under then  outstanding,  and    of  all    matured 


TRUST  DEEDS  131 

coupons,  and  of  all  other  accrued  interest  on 
such  bonds  the  payment  of  which  has  not  been 
so  extended. 

AETICLE  VII. 

The  number  first  having  been  selected  by  lot 
by  the  Corporation  Trustee,  any  outstanding 
bond  issued  hereunder  may  be  redeemed  and 
paid  by  the  Company  at  the  place  of  payment 
of  said  bonds  on  any  interest  payment  date, 
upon  payment  of  the  principal  of  said  bond  and 
interest  due  thereon  at  the  date  of  such  re- 
demption, together  with  a  premium  of  two  and 
one-half  (21/2)  per  centum  on  the  principal 
thereof.  Such  selections  shall  in  every  case  be 
made  from  the  bonds  first  maturing,  no  bond 
being  subject  to  selection  for  redemption  until 
all  bonds  of  prior  maturities  have  either  been 
paid  or  selected  for  redemption.  In  case  of  an 
election  to  redeem  any  of  the  bonds  issued  here- 
under before  maturity  and  a  selection  pursuant 
to  such  election  either  the  Company  or  the  Cor- 
poration Trustee  shall  publish  a  notice  of  such 
election  to  redeem  and  the  selection  thereunder 
once  a  week  for  four  successive  weeks  (the  first 
of  such  publications  to  be  not  less  than  ninety 
days  previous  to  the  date  of  redemption)  in 
some  newspaper  of  general  circulation  pub- 
lished in  the  City  of  Chicago,  State  of  Illinois, 
which  notice  shall  state  the  numbers  of  the 
bonds  selected  as  above  to  be  redeemed,  and  the 
date  when  the  bonds  so  selected  shall  be  due 


132  TIMBER  BONDS 

'Mid  payable  under  such  redemption.  All  bonds 
so  designated  for  redemption  shall  become  due 
and  payable  on  the  date  given  in  such  published 
notice,  and  shall  from  such  date  cease  to  draw 
interest,  provided  that  at  or  prior  to  such  date 
there  shall  have  been  deposited  with  the  Cor- 
poration Trustee  the  proper  amount  of  money 
for  the  redemption  of  said  bonds  so  designated 
for  redemption.  Upon  the  deposit  with  the 
Corporation  Trustee  of  the  proper  amount  of 
money  for  the  redemption  of  any  bond  or  bonds 
so  designated,  the  Company  and  the  Trustees 
may  be  privileged  to  consider  such  bond  or 
bonds  as  paid  and  cancelled,  and  the  Company 
shall  be  under  no  further  obligation  to  the 
holder  or  holders  of  such  bond  or  bonds;  nor 
shall  the  Trustee  be  further  liable  or  under 
obligation  to  such  holder  or  holders  except  for 
the  moneys  deposited  in  redemption  of  such 
bonds,  to  be  paid  without  interest  upon  their 
surrender. 

ARTICLE  VIII. 

Subject  to  the  right  of  suspension  or  revoca- 
tion as  provided  in  Article  XII  hereof  and  so 
long  as  the  Company  shall  not  be  in  default 
in  the  payment  of  any  of  the  bonds  or  interest 
coupons  secured  hereby,  or  in  the  payment  of 
taxes  or  other  governmental  assessments  or 
charges  as  provided  in  this  mortgage,  or  in  the 
performance  of  any  of  the  other  covenants 
herein  contained  on  its  part  to  be  performed, 


TRUST  DEEDS  133 

the  Trustees  shall  and  are  hereby  authorized 
to  release  unto  the  Company  and  to  permit  the 
Company  to  cut  and  remove  free  from  the  lien 
of  this  mortgage,  or  deed  of  trust,  any  of  the 
timber  conveyed  hereby,  or  the  timber  on  any 
or  all  of  the  lands  conveyed  hereby,  which  the 
Company  may  select,  when  the  Company  shall 
have  first  paid  to  the  Corporation  Trustee  Two 
Dollars  and  fifty  cents  ($2.50)  per  thousand 
feet  on  the  estimated  stumpage  for  the  timber 
on  each  description  or  group  of  descriptions 
which  the  Company  then  desires  the  right  to 
cut,  as  the  estimated  stumpage  thereon  is  shown 
on  a  list  called  '' Estimated  Stumpage  List" 
signed  in  quadruplicate  by  the  Grantors  herein, 
by  the  Corporation  Trustee  and  by  said  Lyon, 
Gary  &  Company;  and  one  original  of  which 
list  is  deposited  with  each  of  the  signatories 
thereto.  Consideration  for  the  privilege  of  ob- 
taining such  releases  may  be  given  by  the  Com- 
pany in  any  of  the  following  three  ways : 

(a)  By  payment  in  cash. 

(b)  By  delivery  to  the  Trustees  of  any 
of  the  bonds  hereby  secured  and  then  out- 
standing, which  it  may  have  acquired;  in 
which  case,  for  the  purpose  of  obtaining  re- 
leases the  amount  of  the  principal  of  such 
bonds  so  delivered  shall  be  treated  the 
same  as  if  a  like  amount  had  been  paid  to 
the  Trustees  in  cash. 

(c)  By  the  payment  of  any  of  the  bonds 
secured  hereby, — treating  only  the  amount 


134  TIMBER  BONDS 

of  principal  paid  as  a  consideration  for  re- 
leases. 

In  the  event  that  the  Company  shall  acquire 
and  deliver  bonds  to  the  Trustees,  as  provided 
in  Paragraph  (b)  above,  the  Trustees  shall 
cancel  the  said  bonds  and  coupons  attached 
thereto  so  delivered  and  forming  the  considera- 
tion or  part  of  the  consideration  for  such  re- 
leases. 

In  this  latter  case  the  Trustees  shall  keep 
a  list  of  the  numbers  of  all  Bonds  so  used  for 
the  purpose  of  securing  releases  of  portions 
of  the  timber  and  shall  indicate  on  each  such 
Bond  that  it  has  been  so  used, — together  with 
the  date  of  such  use. 

All  money  received  by  the  Corporation  Trus- 
tee under  this  Article  shall  be  used  for  the  re- 
tirement of  Bonds  secured  hereby  as  provided 
in  Article  VII  hereof. 

The  Company  may  enter  upon  any  land  from 
which  the  timber  has  been  so  released  and  may 
conduct  logging  operations  thereon  as  it  may 
desire ;  and  the  Company  may  also,  at  its  pleas- 
ure, remove  any  logging  railroad  or  other  prop- 
erty which  it  may  place  on  such  land. 

The  Company  covenants  that  it  will  keep 
proper  books  of  record  and  account  showing 
full,  true  and  perfect  entries  of  all  dealings  or 
transactions  of  or  in  relation  to  the  plants, 
properties,  business  and  affairs  of  the  Com- 
pany, and  which  shall  at  all  times  be  open  to 
the  inspection  of  the  Trustees  or  either  of  them, 


TRUST  DEEDS  135 

and  of  Lyon,  Gary  &  Company,  or  of  their  re- 
spective successors  hereunder;  and  that  when- 
ever requested  either  by  the  Trustees  or  by 
Lyon,  Gary  &  Company,  or  their  respective 
successors,  the  Company  shall  and  will  furnish 
complete  statements  showing  its  financial  con- 
dition, together  with  such  other  information 
bearing  on  the  security  of  the  bonds  as  may  be 
requested. 

ARTICLE  IX. 

The  Company  covenants  and  agrees  that  in 
all  cases  where  timber  is  hereby  conveyed, 
without  the  fee  simple  title  to  the  land  upon 
which  it  stands  being  also  conveyed,  the  Com- 
pany will  and  shall  take  and  pay  to  the  Cor- 
poration Trustee  for  the  said  timber  (or  pay 
for  the  same  without  taking  it)  not  less  than 
two  years  before  the  expiration  of  the  time  for 
removal  thereof,  as  stated  herein,  two  dollars 
and  fifty  cents  ($2.50)  per  thousand  feet  on  the 
estimated  amount  (stumpage)  of  such  timber 
as  the  same  is  shown  by  the  ''Estimated  Stump- 
age  List"  referred  to  in  Article  VIII  hereof. 

In  case  the  Company  procures  an  extension 
of  the  time  within  which  the  said  timber  or  any 
portion  thereof  may  be  removed,  in  such  form 
that  this  right  will  in  their  opinion  enure  to 
the  benefit  of  the  Trustees  hereunder,  their 
successors  and  assigns,  the  obligation  of  the 
Company  to  take  and  pay  for  said  timber,  the 
time  for  removal  of  which  may  be  so  extended, 


136  TIMBER  BONDS 

or  to  pay  for  it  without  taking,  shall  be  ac- 
cordingly extended;  provided,  however,  that 
the  time  for  removal  shall  never  become  less 
than  two  years  without  the  Company  paying 
the  Corporation  Trustee  therefor. 

ARTICLE  X. 

In  case  before  the  payment  in  full  of  all  the 
bonds  hereby  secured  with  interest  thereon, 
any  timber  hereby  mortgaged  or  the  timber  on 
any  portion  of  the  premises  hereby  mortgaged 
(except  such  as  may  have  been  theretofore  re- 
leased under  the  provisions  of  this  instrument) 
shall  be  injured  or  damaged  by  the  action  of 
fire,  or  by  wind  or  the  elements  to  an  extent 
sufficient  in  the  opinion  of  the  Trustees  or  of 
Lyon,  Gary  &  Company,  to  appreciably  affect 
the  value  of  the  same  as  security  for  the  pay- 
ment of  the  bonds  and  coupons  then  outstand- 
ing, the  Companj^  shall  within  sixty  days  after 
the  extent  of  such  loss  shall  be  determined,  pay 
to  the  Union  Trust  Company  for  the  benefit  of 
the  bondholders  the  sum  of  One  (1)  Dollar  per 
thousand  feet  stumpage  on  the  timber  so  in- 
jured or  damaged,  the  land  descriptions  on 
which  the  timber  has  been  injured  or  damaged 
being  ascertained  by  investigation  under  direc- 
tion of  the  Trustees,  and  the  amount  of  timber 
thereon,  on  which  the  payments  of  One  (1) 
Dollar  per  thousand  feet  shall  be  made  as  above 
expressed,  being  determined  by  the  estimates 
shown  on  said  ''Estimated  Stumpage  List." 


TRUST  DEEDS  137 

The  salvage  of  any  timber  so  injured  or  dam- 
aged, and  on  account  of  wliicli  damage  pay- 
ments are  made  as  above  provided,  shall  re- 
main subject  to  the  terms  of  this  instrument 
notwithstanding  such  payments ;  but  should  the 
Company  desire  to  cut  and  remove  such  timber, 
free  from  the  lien  or  encumbrance  of  this  in- 
strument, it  shall  have  the  right  to  do  so  upon 
paying  the  Union  Trust  Company  for  the  bene- 
fit of  the  bondholders,  the  additional  sum  of 
one  dollar  and  fifty  cents  ($1.50)  per  thousand 
feet  stumpage  for  any  such  damaged  timber. 

ARTICLE  XI. 

All  sums  of  money  paid  to  the  Trustees  by 
the  Company  for  the  release  of  any  portion  of 
the  timber  hereby  mortgaged,  in  accordance 
with  any  Article  hereof,  and  all  other  sums 
which  may  come  into  the  hands  of  the  Trus- 
tees for  the  benefit  of  the  holders  of  the  bonds 
issued  hereunder,  shall  be  applied  by  the  Trus- 
tees from  time  to  time  to  the  purchase  of  out- 
standing bonds  issued  hereunder  at  such  price 
as  may  be  agreed  upon  by  the  Company  and  the 
Trustees.  If  none  of  the  bonds  secured  hereby 
can  be  so  purchased  the  Trustees  in  the  man- 
ner provided  in  Article  VII  hereof,  shall  by 
lot  select  bonds  to  be  redeemed  to  an  amount 
sufficient  to  approximately  exhaust  the  funds 
so  held  by  them;  after  which  the  bonds  so  se- 
lected  shall   in   all   things   be   subject   to   the 


138  TIMBER  BONDS 

provisions  of  Article  VII  hereof  and  redeema- 
ble in  the  manner  therein  provided;  such  re- 
demption shall  be  made  on  the  first  interest 
pajonent  date  occurring  ninety  days  or  more 
after  the  receipt  of  such  funds  by  the  Trustees. 
No  bond  which  may  be  paid,  bought  or  re- 
deemed under  this  or  any  other  Article  hereof 
shall  be  reissued,  but  the  same  shall  be  can- 
celled by  the  Trustees  and  delivered  to  the 
Company  for  preservation. 

ARTICLE  XII. 

While  the  Company  shall  not  be  in  default 
in  the  performance  of  any  of  the  covenants 
in  this  instrument  contained  it  may  from  time 
to  time,  subject  to  the  conditions  hereinafter 
stated,  sell,  free  from  the  lien  of  this  instru- 
ment, (a)  the  property  by  it  mortgaged  here- 
under, lying  in  Lane  and  Linn  Counties,  as  a 
whole  but  not  otherwise,  upon  the  payment  in 
cash  of  a  sum  equalling  One  Dollar  and  fifty 
cents  ($1.50)  per  thousand  ft.  on  the  estimated 
stumpage  on  said  lands  as  shown  by  the  *' Es- 
timated Stumpage  List"  referred  to  in  Arti- 
cle VIII  hereof;  (b)  all  or  any  part  in  parcels 
of  forty  acres  or  more  of  the  property  by  it 
mortgaged  hereunder,  lying  in  Coos,  Curry, 
Douglas  and  Lincoln  Counties,  upon  the  pay- 
ment in  cash  of  such  sum  or  sums  of  money 
as  the  Company,  the  Trustees  and  Lyon,  Gary 
&  Company  may  agree  upon  which  shall  not 


TRUST  DEEDS  139 

exceed  Two  Dollars  and  fifty  cents  ($2.50)  per 
thousand  feet  stumpage  based  upon  the  esti- 
mate of  the  stumpage  on  said  lands  as  shown 
in  the  list  referred  to  above. 

Either  the  Trustees  or  Lyon,  Gary  &  Compa- 
ny may,  in  their  discretion,  cause  such  investi- 
gation to  be  made  of  the  desirability  of  per- 
mitting or  approving  of  any  proposed  sale  or 
sales  of  the  property  or  any  part  thereof,  in 
said  last  named  four  counties,  in  case  a  sale 
is  proposed  at  less  than  the  maximum  price 
basis  above  in  this  Article  provided  for,  as 
they  may  see  fit,  and  the  expense  of  such  in- 
vestigation shall  be  borne  by  the  Company. 
The  Trustees  shall  execute  such  instruments  as 
may  be  necessary  to  release  from  the  lien  of 
this  instrument  any  property  sold,  according 
to  the  provisions  of  this  Article. 

And  always  further  provided,  liowever,  that 
the  right  of  the  Company  to  sell  the  land  or  any 
portion  of  the  same,  as  is  in  this  Article  pro- 
vided, and  the  right  of  the  Company  to  sell  or 
procure  the  release  of  timber,  in  any  quantities 
whatsoever,  as  provided  in  other  articles  here- 
of, may  be  suspended  or  revoked  by  the  Trus- 
tees with  the  concurrence  of  Lyon,  Gary  & 
Company,  in  case  of  litigation  arising  over  or 
affecting  or  involving  questions  alfecting  or 
which  may  affect  the  title  to  as  much  as  2,000 
acres  of  land  embraced  herein ;  or  to  the  lumber 
mill  plant  hereby  mortgaged;  said  suspension 
or  revocation  being  optional  with  the  Trustees 


140  TIMBER  BONDS 

and  Lyon,  Gary  &  Company,  and  if  the  right 
is  exercised,  the  same  shall  remain  in  effect 
imtil  some  satisfactory  settlement  of  such  liti- 
gation, or  until  other  arrangement  is  made 
with  reference  thereto,  which  is  satisfactory  to 
them  in  their  discretion. 

The  proceeds  of  the  sale  of  any  portion  of 
the  property  covered  hereby  (that  is  the  gross 
amount  of  sale  less  reasonable  commissions 
and  expense  connected  with  such  sale)  shall  be 
paid  and  turned  over  to  the  Corporation  Trus- 
tee, and  shall  be  treated  by  the  Trustees  in  like 
manner  and  used  by  them  for  the  same  purpose 
as  are  the  pajTuents  provided  for  in  Articles 
VII  and  XI  hereof. 

Neither  the  Trustees  nor  Lyon,  Gary  &  Com- 
pany, shall  be  under  any  liability  for  anything 
done  (or  omitted  to  be  done)  by  them  respect- 
ively in  good  faith  hereunder. 

ARTICLE  XIIL 

All  moneys  which  may  be  received  as  com- 
pensation for  any  property  or  right  of  the 
Company  which  ma}^  be  taken  by  the  exercise 
of  the  power  of  eminent  domain  or  expropria- 
tion shall  be  paid  to  the  Trustees  and  used  for 
the  retirement  of  bonds  secured  herein  in  ac- 
cordance with  Article  VII  hereof, — excepting 
that  if  such  condemnation  or  expropriation 
proceedings  shall  be  defended  by  the  Company, 
its  reasonable  expenses  and  attorney's  fees  in 


TRUST  DEEDS  141 

making  such  defense  shall  be  deducted  from 
any  award  and  only  the  surplus  paid  over  to 
the  Trustees  as  herein  provided. 

But  the  Company  shall  not  be  entitled  to  have 
the  release  of  any  property  covered  hereby  on 
account  of  bonds  purchased  with  money  coming- 
through  condemnation  or  expropriation  pro- 
ceedings. 

ARTICLE  XIV. 

If  the  Company  or  its  successors  or  assigns, 
shall  well  and  truly  pay  or  cause  to  be  paid  to 
the  holders  thereof  the  principal  of  all  bonds  se- 
cured hereby,  or  intended  so  to  be,  and  the  in- 
terest moneys  to  become  due  thereon  respect- 
ively, at  the  time  and  in  the  manner  specified 
in  the  said  bonds  and  coupons,  without  deduc- 
tion for  United  States,  State,  County,  Muni- 
cipal or  other  tax  or  taxes,  or  assessments,  or 
other  governmental  charges  which  the  Compa- 
ny may  be  required  or  permitted  to  pay  or  re- 
tain therefrom  by  any  present  or  future  law, 
according  to  the  true  tenor  and  effect  thereof, 
or  if  at  any  time  the  Company  shall  acquire 
and  cancel  all  of  the  bonds  and  interest  coupons 
secured  hereby,  and  pay  off  and  discharge  all 
obligations  incurred  hereunder  including  the 
payment  of  the  reasonable  charges  and  ex- 
penses of  the  Trustees,  then  these  presents  and 
the  trusts  hereby  created,  and  all  the  estate, 
right,  title  and  interest  hereby  vested  in  the 
said  Trustees,  their  successors  and  assigns,  in 


142  TIMBER  BONDS 

the  property  hereby  conveyed  shall  cease  and 
determine,  as  fully  as  if  this  mortgage  had  nev- 
er been  executed;  and  in  that  case  the  said 
Trustees  or  their  successors  in  the  trust,  on 
demand  of  the  Company  and  the  cancellation 
of  the  bonds  and  coupons  hereby  secured,  shall 
execute  and  deliver  to  each  of  the  Grantors 
herein  all  such  instruments  as  may  be  neces- 
sary to  discharge  and  cancel  this  mortgage  as 
to  the  premises  which  by  the  said  Grantors  are 
hereby  conveyed. 

ARTICLE  XV. 

The  Trustees  shall  have  the  right  at  any  time 
in  their  discretion,  but  not  oftener  than  once  in 
six  (6)  months,  to  cause  an  inspection  of  the 
lands  and  timber  herein  conveyed  to  see  wheth- 
er the  property  mortgaged  hereunder  has  suf- 
fered any  damage,  or  been  trespassed  upon,  or 
whether  there  has  been  any  unauthorized  use  of 
the  timber  or  of  the  premises  hereby  conveyed 
or  of  the  timber  thereon;  and  the  expense  of 
any  such  investigation  shall  be  borne  and  paid 
by  the  Company,  but  the  Trustees  shall  not  be 
required  to  have  such  an  examination  made  un- 
less upon  the  written  request  of  the  holder  or 
holders  of  some  one  or  more  of  the  bonds  se- 
cured hereby  and  then  outstanding,  together 
with  the  written  concurrence  of  Lyon,  Gary  & 
Company  thereto,  and  unless  such  bondholder 
or  bondholders  first  advance  or  pay  to  the 
Trustees  the  estimated  cost  of  such  inspection. 


TRUST  DEEDS  143 

ARTICLE  XVI. 

If  default  shall  be  made  in  the  payment  of 
the  principal  of  any  said  bonds  when  the  same 
become  due  or  in  the  payment  of  any  interest 
money  mentioned  in  said  bonds  or  coupons,  or 
any  or  either  of  them,  when  the  same  becomes 
due,  or  if  the  Company  shall  cut  timber  situ- 
ate upon  the  mortgaged  premises  or  any  part 
thereof  or  cut  any  of  the  timber  mortgaged 
hereunder,  or  sutfer  any  of  the  same  to  be  cut, 
otherwise  than  is  herein  provided,  or  shall  fail 
to  perform  any  other  of  the  covenants  in  this 
mortgage  or  deed  of  trust  contained,  on  its 
part  to  be  performed,  or  to  cause  to  be  per- 
formed, and  if  such  default  shall  continue  foi 
a  period  of  sixty  days,  the  Trustees  may,  and 
if  thereunto  requested  in  writing  by  the  holders 
of  ten  (10)  per  centum  in  interest  (but  not  less 
than  $25,000.00)  of  the  said  bonds  then  out- 
standing shall  declare  the  principal  of  all  the 
bonds  hereby  secured  then  outstanding  to  be, 
and  same  shall  thereupon  become,  immediately 
due  and  payable,  anything  contained  in  said 
bonds  or  herein  to  the  contrary  notwithstand- 
ing.   • 

ARTICLE  XVII. 

If  default  shall  be  made  in  the  payment  of 
any  bond  or  coupons  when  the  same  become 
due  (whether  such  default  shall  have  continued 
for  the  period  of  sixty  days  or  not),  or  if  de- 


144  TIMBER  BONDS 

fault  be  made  in  the  payment  of  taxes,  as  is 
herein  provided,  and  such  default  shall  contin- 
ue for  the  period  of  sixty  days,  the  Trustees 
may,  and  upon  the  request  in  writing  of  the 
holders  of  ten  (10)  per  centum  in  interest  (but 
not  less  than  $25,000.00)  of  the  bonds  and  cou- 
pons then  outstanding,  and  upon  being  indem- 
nified to  their  satisfaction  for  any  expenses 
and  liabilities  which  they  may  incur,  shall,  as 
the  agents  and  attorneys  in  fact  of  the  Grant- 
ors herein  enter  into  and  take  full  possession 
of  the  lands  and  all  other  property  hereby 
mortgaged  (except  such  as  may  have  been 
theretofore  released  under  the  provisions  of 
this  instrument)  and  hold,  use,  manage,  main- 
tain and  operate  the  same;  collect  and  receive 
all  moneys  and  revenues  arising  from  such 
management  and  operations,  and  apply  the 
same,  first  to  the  expenses  of  such  operation, 
including  reasonable  compensation  for  their 
own  services  and  for  the  services  of  their  coun- 
sel, attorneys,  agents  and  servants;  second,  to 
the  maintenance,  management  and  operation  of 
the  property,  including  the  payment  of  taxes, 
assessments  and  other  governmental  charges, 
and  third,  to  the  payment  pro  rata  of  any 
amount,  principal  or  interest,  that  may  be  due 
and  in  default  upon  said  bonds,  together  with 
interest  on  overdue  installments  of  interest, 
but  not  to  the  payment  of  any  bond  or  coupon 
the  time  for  payment  of  which  may  have  been 
extended.     In  case  all  of  the    said    payments 


TRUST  DEEDS  145 

shall  be  made  in  full,  the  Trustees  after  making 
such  provision  as  they  may  deem  advisable 
for  the  next  semi-annual  installment  of  inter- 
est and  principal,  shall  restore  to  the  respect- 
ive Grantors  the  possession  of  the  premises  by 
them  hereby  conveyed.  This  power  of  entry 
may  be  exercised  as  often  as  occasion  therefor 
shall  arise  pending  the  trust;  and  this  power 
of  attorney  is  and  shall  be  irrevocable. 


ARTICLE  XVIII. 

In  case  (1)  default  shall  be  made  in  the  due 
and  punctual  payment  of  any  interest  on  any 
bond  hereby  secured,  and  any  such  default 
shall  continue  for  a  period  of  sixty  days ;  or  in 
case  (2)  default  shall  be  made  in  the  due  and 
punctual  payment  of  the  principal  of  any  bond 
hereby  secured;  or  in  case  (3)  the  Company 
shall  cut  timber  situate  upon  said  mortgaged 
premises  or  any  timber  mortgaged  hereunder 
or  suffer  the  same  to  be  cut  otherwise  than  is 
herein  provided  and  such  default  shall  con- 
tinue for  a  period  of  sixty  days;  or  in  case 
(4)  default  shall  be  made  in  the  due  observance 
or  performance  of  any  other  covenant,  con- 
dition or  agreement  herein  required  to  be  kept 
or  performed  by  the  Company  and  such  default 
shall  continue  for  a  period  of  sixty  days,  then 
and  in  every  such  case  the  Trustees,  or  either 
of  them,  (a)  may  enter  upon  and  take  posses- 
sion of  the  mortgaged  property,  or  any  part 


146  TIMBER  BONDS 

thereof,  collect  and  receive  all  rents,  issues,  in- 
come and  profits  therefrom  and  operate  and 
conduct  the  business  of  either  or  both  of  the 
grantors  to  the  same  extent  and  in  the  same 
manner  as  the  grantors  might  do;  (b)  may 
cause  this  mortgage  to  be  foreclosed  and  the 
mortgaged  property,  or  any  part  thereof,  to 
be  sold;  (c)  may  proceed  to  protect  and  enforce 
the  rights  of  the  Trustees  and  the  bondholders 
hereunder  whether  for  specific  performance  of 
any  covenant,  condition  or  agreement  herein 
contained  or  in  aid  of  the  execution  of  any 
power  herein  granted  or  for  the  enforcement 
of  such  other  appropriate  legal  or  equitable 
remedy  as  may,  in  the  opinion  of  counsel,  be 
most  effectual  to  protect  and  enforce  the  rights 
aforesaid;  (d)  shall  be  entitled  as  of  right  with- 
out notice  to  the  appointment  of  a  receiver  of 
the  mortgaged  property,  or  any  part  thereof, 
and  each  of  the  grantors  does  hereby  irrevoc- 
ably consent  to  such  appointment. 

ARTICLE  XIX. 

The  Grantors  herein  covenant  that  they  will 
not  apply  for  or  avail  themselves  of  any  in- 
junction or  stay  of  proceedings,  or  plead,  or  in 
any  way  take  advantage  of  any  valuation  law, 
appraisement  law,  or  any  other  law,  whether 
now  in  force  or  which  may  hereafter  be  enact- 
ed, which  may  in  any  way  alter,  impair,  or  im- 
pede the  rights  or  remedies  of  the  holders  of 


TRUST  DEEDS  147 

the  bonds  issued  hereunder,  or  of  the  Trustees 
as  herein  provided,  or  which  shall  affect  or 
change  the  time,  place,  means  or  mode  of  per- 
fecting or  enforcing  such  rights  or  remedies; 
and  they  hereby  expressly  waive  all  benefit  and 
advantage  of  any  and  all  such  laws. 

ARTICLE  XX. 

Upon  any  foreclosure  sale  of  the  property 
hereby  mortgaged,  or  any  part  thereof,  the 
purchaser  in  making  payment  therefor,  shall 
he  entitled,  after  paying  in  cash  so  much  as 
shall  be  necessary  to  cover  the  cost  and  ex- 
penses of  the  sale  and  of  the  proceedings  in- 
cident thereto,  and  aU  other  charges  that  may 
be  decreed  to  be  paid  in  cash,  to  appropriate 
and  use  toward  the  payment  of  the  remainder 
of  the  purchase  price  any  of  the  bonds  or  cou- 
pons issued  hereunder,  and  entitled  to  partici- 
pate in  the  proceeds  of  such  sale,  reckoning 
each  bond  or  coupon  so  appropriated  and  used 
at  such  sum  as  shall  be  payable  thereon  out 
of  the  net  proceeds  of  the  sale ;  and  proper  re- 
ceipts shall  thereupon  be  given  to  the  holders 
of  such  bonds  or  coupons  for  the  amount  so 
payable  thereon,  and  the  bonds  and  coupons,  if 
the  net  proceeds  of  the  sale  shall  be  sufficient 
to  pay  them  in  full,  shall  be  delivered  up  to  the 
person  making  the  sale  under  the  decree  of  the 
court  for  cancellation ;  or  if  the  proceeds  of  the 
sale  shall  not  be  sufficient  to  pay  such  bonds 


148  TIMBER  BONDS 

or  coupons  in  full,  then  proper  endorsement 
shall  be  made  thereon  of  the  amount  so  paid 
and  they  shall  then  be  returned  to  the  holders. 


ARTICLE  XXI. 

Upon  any  foreclosure  sale  of  property  here- 
by mortgaged  the  property  shall  be  sold  either 
as  a  whole  or  in  parcels  at  the  option  of  the 
Trustees  conducting  the  foreclosure  proceed- 
ings; and  if  in  parcels  the  same  shall  be  di- 
vided as  shall  be  considered  for  the  best  inter- 
ests of  the  bondholders  by  the  said  Lyon,  Gary 
&  Company,  as  may  be  evidenced  in  writing  ad- 
dressed to  the  Trustees  or  to  the  Court;  or  in 
case  of  such  foreclosure  sale  the  property  may 
at  the  option  of  the  Trustees  be  offered  first 
by  parcels  designated  as  above,  and  then  as  a 
whole,  that  offer  producing  the  highest  price  for 
the  entire  property  to  prevail — any  law  statu- 
tory or  otherwise  to  the  contrary  notwithstand- 
ing. And  the  Grantors  herein  hereby  expressly 
waive  the  right  to  require  any  such  sale  to  be 
made  by  the  acre,  or  in  parcels,  or  the  right  to 
select  such  parcels. 

In  case  any  foreclosure  sale  of  the  premises 
hereby  mortgaged  should  fail  to  realize  suffi- 
cient funds  for  the  payment  in  full  of  the  en- 
tire debt  hereby  secured,  including  all  author- 
ized expenses,  court  costs,  attorneys'  fees,  et 
cetera,  the  balance  remaining  unpaid  shall  be 
and  remain  a  valid,  subsisting  and  enforceable 


TRUST  DEEDS  149 

obligation  of  and  against  the  Company,  and  a 
deficiency  judgment  against  the  Company  may 
be  taken  thereon,  and  the  Court  may  direct  in 
the  decree  of  foreclosure  of  this  mortgage  that 
any  balance  which  may  remain  unsatisfied  after 
the  sale  of  the  mortgaged  premises,  and  the  ap- 
plication of  the  proceeds  of  said  sale  toward  the 
payment  of  the  mortgage  indebtedness,  togeth- 
er with  costs  and  interests,  shall  be  satisfied 
from  any  other  property  of  the  Company. 

In  case  the  proceeds  of  foreclosure  sale  of 
the  premises  hereby  mortgaged  should  be  insuf- 
ficient to  satisfy  in  full  the  mortgage  debt  here- 
by secured  and  then  existing,  together  with 
costs,  attorneys'  fees  and  expenses  of  foreclos- 
ure and  sale,  then  and  in  such  event  the  Trus- 
tees herein  named,  or  any  successor  to  such 
Trustees,  are  hereby  authorized  to  commence 
suit  in  any  court  of  record  (State  or  Federal) 
in  the  State  of  Illinois  or  in  any  court  of  record 
having  jurisdiction  of  the  amount  involved,  in 
any  other  State  of  the  United  States,  against 
the  Company  to  recover  judgment  for  the  full 
amount  of  such  deficiency  with  interest  thereon 
at  the  rate  of  six  per  centum  per  annum  from 
the  date  of  such  foreclosure  sale,  together  with 
attorneys'  fees  and  costs  of  court,  and  the  then 
President  of  the  said  Lyon,  Gary  &  Company, 
is  hereb}^  irrevocably  appointed  the  attorney 
in  fact  of  the  Company  to  enter  the  appearance 
of  the  Company  in  said  suit,  and  to  confess 
judgment  in  said  suit  in  favor  of  the  plaintiff 


150  TIMBER  BONDS 

therein  and  against  the  Company  for  the  full 
amount  of  said  deficiency,  with  interest,  court 
costs,  and  attorneys'  fees,  as  aforesaid,  and  in 
any  suit  upon  such  judgment  or  upon  any  re- 
newal thereof,  to  recover  the  amount  of  such 
judgment  or  the  renewal  of  such  judgment, 
to  likewise  enter  the  appearance  of  the 
Company  in  any  such  suit  and  to  confess 
judgment  thereon  for  the  amount  of  said  judg- 
ment or  renewal  thereof  with  interest  thereon 
at  the  rate  aforesaid  with  costs  of  court,  and 
it  is  agreed  that  this  clause  of  this  mortgage 
shall  be  deemed  a  separate  and  independent 
clause  of  this  instrument,  and  shall  be  treated 
and  deemed  as  a  contract  entered  into  between 
the  parties  hereto  to  be  governed  by  the  laws 
of  the  State  of  Illinois  to  the  same  effect  as  if 
this  instrument  had  been  entered  into  in  said 
State  and  were  to  be  performed  there. 

ARTICLE  XXII. 

In  case  of  a  foreclosure  of  this  mortgage  or 
deed  of  trust  the  proceeds  shall  be  applied : 

First,  to  the  payment  of  all  expenses  of  pro- 
tecting and  enforcing  this  trust,  including  rea- 
sonable compensation  to  the  trustees,  and  all 
expenses  incurred  by  them  in  connection  here- 
with, and  including  reasonable  attorneys'  fees 
for  any  service  that  may  be  rendered  either  in 
protecting  this  trust  or  enforcing  the  same. 

Second,  to  the  payment  pro  rata  of  all  the 


TRUST  DEEDS  151 

bonds  and  interest  coupons  secured  hereby 
without  preference  of  bonds  over  coupons  or 
coupons  over  bonds,  subject  however,  to  the 
provisions  of  Article  VI  hereof;  but  only  cou- 
pons that  have  matured  and  the  earned  portion 
of  those  next  maturing  shall  be  entitled  to  par- 
ticipate in  such  proceeds;  and, 

Third,  the  balance,  if  any  there  be,  shall  be 
paid  to  the  Company  or  its  order. 

ARTICLE  XXIII. 

No  delay  or  omission  of  the  Trustees,  or  of 
any  holder  of  bonds  hereby  secured,  to  exer- 
cise any  right  of  power  accruing  upon  any  de- 
fault, shall  impair  any  such  right  or  power, 
or  shall  be  construed  to  be  a  waiver  of  any  such 
default,  or  an  acquiescence  therein;  and  every 
such  power  and  remedy  given  by  this  instru- 
ment to  the  Trustees,  or  to  the  bondholders, 
may  be  exercised  from  time  to  time  and  as 
often  as  may  be  deemed  expedient,  by  the 
Trustees  or  by  the  bondholders. 

ARTICLE  XXIV. 

Except  as  may  be  herein  expressly  provided 
to  the  contrary,  no  right  or  remedy  herein  con- 
ferred upon  or  reserved  to  the  Trustees  shall 
be  or  is  intended  to  be  exclusive  of  any  other 
right  or  remedy,  but  every  such  right  or  reme- 
dy herein  provided  shall  be  cumulative,  and 


152  TIMBER  BONDS 

shall  be  in  addition  to  every  other  right  or 
remedy  given  hereunder,  or  now  or  hereafter 
existing  at  law  or  in  equity  or  by  statute ;  and 
every  power  and  remedy  given  by  this  instru- 
ment to  the  Trustees  may  be  exercised  from 
time  to  time  and  as  often  as  may  be  deemed  ex- 
pedient. No  delay  or  omission  of  the  Trustees 
to  exercise  any  right  or  power  arising  from  any 
default  shall  impair  any  such  right  or  power, 
or  shall  be  construed  to  be  a  waiver  of  any 
such  default  or  an  acquiescence  therein. 

ARTICLE  XXV. 

Every  holder  of  any  of  the  bonds  secured 
hereby  accepts  the  same  subject  to  the  express 
understanding  and  agreement  that  every  right 
of  action,  whether  at  law  or  in  equity,  under 
this  instrument,  is  vested  exclusively  in  the 
Trustees,  and  under  no  circumstances  shall  the 
holder  of  any  bonds  or  coupons,  or  any  number 
of  such  holders,  have  any  right  to  institute  any 
action  at  law  or  any  suit  or  proceeding  in 
equity,  or  otherwise,  under  this  instrument,  or 
upon  any  bond  or  coupon  secured  hereby,  for 
the  purpose  of  enforcing  any  covenant  or  rem- 
edy herein  or  in  said  bonds  or  coupons  con- 
tained, or  to  foreclose  this  mortgage,  except  in 
case  of  refusal  on  the  part  of  the  Trustees  to 
comply  with  any  duty  imposed  on  them  in  re- 
spect of  any  such  covenant  of  foreclosure  after 
demand  by  the  holder  or  holders  of  such  bonds 


TRUST  DEEDS  153 

or  coupons  and  the  production  of  such  bonds 
or  coupons  by  the  holder  thereof  to  the  Trus- 
tees, or  the  furnishing  by  such  holders  of  other 
evidence  satisfactory  to  the  Trustees  that  they 
are  such  holders,  and  the  giving  to  the  Trustees 
of  indemnity  satisfactory  to  them,  securing 
them  against  liability  by  reason  of  the  action 
requested;  but  no  inaction  by  said  Trustees, 
upon  any  such  request  shall  be  deemed  a  re- 
fusal until  after  the  expiration  of  a  reasonable 
time  and  not  less  than  twenty  (20)  days  for 
the  consideration  thereof  by  said  Trustees. 

In  every  case  in  which  the  Trustees  are  au- 
thorized or  require,  under  any  provision  of 
this  instrument,  to  take  any  action  upon  the 
request  of  the  holders  of  said  bonds,  the  Trus- 
tees shall  have  the  right  to  require  the  person 
or  persons  presenting  such  request,  to  furnish 
proof  as  to  the  ownership  of  the  said  bonds 
presented  by  him  or  them,  by  affidavit  or  other 
evidence  satisfactory  to  the  Trustees;  and  if 
such  proof  be  so  required,  the  said  request  shall 
be  without  effect  until  such  proof  shall  be  fur- 
nished. 

ARTICLE  XXVI. 

So  long  as  there  shall  be  no  default  in  any 
of  the  covenants  in  this  instrument  contained, 
the  Grantors  shall  continue  in  the  possession 
of  all  the  property  embraced  herein,  and  by 
them  respectively  hereby  conveyed  to  the  Trus- 
tees. 


154  TIMBER  BONDS 

ARTICLE  XXVII. 

The  Trustees  herein  named,  or  either  of 
them,  may  resign  or  discharge  themselves  of 
and  from  the  trust  hereby  created,  by  notice  in 
writing  to  be  given  to  the  Company  and  pub- 
lished once  a  week  for  two  consecutive  weeks  in 
a  paper  of  general  circulation  published  in  the 
said  City  of  Chicago,  at  least  thirty  days  be- 
fore such  resignation  shall  take  effect,  or  such 
shorter  time  as  the  party  of  the  first  part  may 
accept  as  sufficient  notice ;  but  such  resignation 
shall  take  effect  immediately  upon  the  appoint- 
ment of  new  Trustees  herein  in  place  of  the 
Trustees  resigning  if  such  new  Trustees  shall 
be  appointed  before  the  time  limited  by  such 
notice. 

The  corporation  of  Lyon,  Gary  &  Company 
may  in  like  manner  resign  or  discharge  itself 
of  the  duty  herein  imposed  upon  it,  in  which 
case  successors  to  its  duties  and  authority  shall 
be  selected  and  appointed  in  like  manner  as 
successor  trustees  hereunder  may  be  selected 
and  appointed. 

ARTICLE  XXVIII. 

In  case  the  trust  created  hereby  shall  be- 
come vacant  by  reason  of  the  resignation,  inca- 
pacity^ or  inability  to  act  of  the  said  Trustees, 
or  either  of  them,  or  of  any  successor  trustee, 
or  otherwise  (except  as  provided  in  the  follow- 
ing Article  XXIX  hereof),  it  shall  be  lawful  for 


TRUST  DEEDS  155 

the  holders  of  the  majority  in  amount  of  tlie 
bonds  then  outstanding  to  appoint  a  successor, 
or  successors  by  a  writing  by  them  signed,  or, 
for  any  judge  of  the  United  States  Circuit 
Court  for  the  Ninth  Judicial  Circuit  in  default 
of  such  appointment,  to  appoint  such  successor, 
or  successors  on  the  application  of  the  holders 
of  not  less  than  one-tenth  in  amount  of  the  said 
bonds  then  outstanding, — one  trustee  always  to 
be  a  private  person,  and  the  other  to  be  a  Trust 
Company,  organized  under  the  laws  of  the 
State  of  Illinois. 

And  upon  any  such  appointment  being  made, 
and  the  said  trust  being  accepted,  such  suc- 
cessors or  substitute  Trustees  shall  without 
further  act  or  deed,  become  vested  with  all  and 
singular  the  estate,  rights  and  powers,  and 
shall  perform  all  the  duties  of  Trustees,  in 
like  manner,  and  with  the  same  effect  as  if 
named  in  this  instrument  as  Trustees. 

ARTICLE   XXIX. 

The  holders  of  a  majority  in  amount  of  the 
outstanding  bonds  secured  by  this  instrument, 
provided  the  Company  shall  join  (or  the  hold- 
ers of  three-quarters  in  amount  of  the  bonds 
then  outstanding  hereunder  without  such 
joinder)  may,  by  a  writing  under  their  respect- 
ive hands  and  seals,  change  the  Trustees  and 
appoint  new  Trustees,  which  instrument,  when 
recorded   in   the  proper   offices   for   recording 


156  TIMBER  BONDS 

deeds  and  mortgages  in  the  Counties  of  Coos, 
Curry,  Douglas,  Lane,  Lincoln  and  Linn,  State 
of  Oregon,  (and  on  payment  to  said  Trustees 
of  all  charges  and  compensation  to  which  they 
shall  at  that  time  be  entitled  hereunder)  shall 
ipso  facto,  and  without  any  further  action,  sub- 
stitute such  new  Trustees  in  the  place  of  the 
Trustees  herein  named,  or  in  place  of  any  suc- 
cessor Trustees,  with  all  the  rights,  powers  and 
privileges  granted  to  the  said  Trustees,  under 
this  instrument,  and  no  conveyance  from  the 
old  Trustees  to  the  said  Trustees  thus  appoint- 
ed shall  be  necessary  to  convey  the  trust  prem- 
ises to  such  new  Trustees,  but  the  old  Trustees 
shall  and  will  upon  the  request  of  such  new 
Trustees,  execute  any  conveyance  necessary  or 
proper  in  order  to  vest  the  said  premises  in 
such  new  Trustees. 

The  Corporation  Trustee,  with  the  written 
concurrence  of  Lyon,  Gary  &  Company  shall 
also  have  the  right  to  remove  Frederick  H. 
Eawson  as  a  Trustee  hereunder,  and  to  ap- 
point another  person  as  Trustee  in  his  place 
and  stead,  by  a  writing  signed  and  acknowl- 
edged by  both  said  Union  Trust  Company  and 
Lyon,  Gary  &  Company,  and  such  writing  when 
recorded  in  the  proper  offices  for  recording 
deeds  and  mortgages  in  the  counties  above 
named  shall  ipso  facto  and  without  further  ac- 
tion substitute  such  new  Trustee  in  the  place 
of  the  said  Frederick  H.  Rawson,  with  all  the 
rights,  powers  and  privileges  granted  to  the 


TRUST  DEEDS  157 

said  Frederick  H.  Eawson  under  this  instru- 
ment, and  no  conveyance  from  said  Frederick 
H.  Eawson  to  the  new  Trustee  so  appointed 
shall  be  necessary  to  vest  in  said  new  Trustee 
the  rights,  title,  interest  and  authority  there- 
tofore held  by  said  Frederick  H.  Eawson. 

And  likewise  in  case  of  the  death  or  resigna- 
tion, or  the  incapacity  or  inability  of  the  said 
Frederick  H.  Eawson,  to  act  as  Trustee  here- 
under, the  said  Union  Trust  Company  and  said 
Lyon,  Gary  &  Company,  may  in  like  manner  ap- 
point another  person  in  his  place  and  stead, 
and  succeeding  to  all  the  title,  rights,  powers 
and  privileges  herein  or  hereby  conferred  upon, 
or  vested  in  the  said  Frederick  H.  Eawson — 
this  being  an  alternative  method  of  filling  such 
vacancy,  in  addition  to  that  provided  in  Article 
XXVIII  hereof. 

AETICLE  XXX. 

It  is  expressly  understood  and  agreed  that 
no  obligation  whatever  rests  upon  the  Trus- 
tees to  see  to  the  recording  of  this  instrument, 
nor  to  do  any  act  suitable  or  proper  to  be  done 
for  the  continuing  of  the  lien  created  hereby, 
nor  to  give  notice  of  the  existence  of  such  lien, 
nor  to  do  any  act  which,  by  the  terms  of  this 
instrument,  is  required  to  be  done  by  some 
party  hereto  other  than  said  Trustees.  Said 
Trustees  shall  be  under  no  dutj  or  obligation, 
not  affirmatively  expressed  on  the  face  of  these 
presents.    Nor  are  said  Trustees   required   by 


158  TIMBER  BONDS 

this  instrument  to  take  any  action  nor  do  any 
act  made  requisite  by  statute  for  protecting, 
perpetuating  or  keeping  good  the  lien  of  these 
presents  upon  the  land,  premises  and  property 
or  any  part  thereof,  hereby  conveyed  or  intend- 
ed so  to  be ;  nor  shall  the  said  Trustees  be  held 
responsible  for  the  consequence  of  any  breach 
by  the  Company  or  by  its  agents  or  servants, 
of  any  of  the  covenants  herein  or  in  said  bonds 
contained,  on  the  part  of  said  party  of  the  first 
part  to  be  kept  and  performed,  nor  for  or  on  ac- 
count of  any  act  of  the  Company  or  of  its 
agents  or  servants,  of  any  kind,  character  or 
nature  whatsoever.  Said  Trustees  shall  have 
no  responsibility  as  to  the  validity  of  this 
mortgage  or  deed  of  trust,  nor  as  to  the  execu- 
tion or  acknowledgment  hereof,  nor  as  to  the 
amount  or  extent  of  the  security  afforded  by 
the  property  covered  hereby;  nor  shall  said 
Trustees  in  any  other  manner,  or  under  any 
circumstances,  be  answerable  or  accountable, 
except  for  bad  faith ;  it  being  expressly  under- 
stood and  agreed  that  the  recitals  herein  con- 
tained are  made  by  and  on  behalf  of  the  said 
parties  of  the  first  and  second  parts  and  that 
the  Trustees  are  not  responsible  for  the  cor- 
rectness thereof. 

Said  Trustees  shall  not  be  under  any  obliga- 
tion to  take  any  action  toward  the  execution  or 
enforcement  of  the  trust  hereby  created,  which 
in  their  opinion,  would  be  likely  to  involve  them 
in  expense  or  liability,  nor  to  defend  any  suit, 


TRUST  DEEDS  159 

unless  one  or  more  of  the  holders  of  the  bonds 
hereby  secured  shall,  as  often  as  required  by 
the  said  Trustees,  furnish  them  with  reasonable 
and  satisfactory  indemnity  against  such  ex- 
pense or  liability;  nor  shall  the  said  Trustees 
be  required  to  take  notice  of  any  default  here- 
under, unless  notified  in  writing  of  such  de- 
fault by  the  holders  of  at  least  ten  (10)  per 
centum  of  the  amount  of  the  bonds  hereby  se- 
cured and  then  outstanding,  nor  to  take  any 
action  in  respect  of  any  default  unless  request- 
ed to  take  such  action  by  writing  signed  by  the 
holders  of  bonds  in  the  amount  hereinbefore 
in  this  Article  provided,  and  be  tendered  in- 
demnity as  aforesaid,  anything  herein  contain- 
ed to  the  contrary  notwithstanding ;  but  neither 
any  such  notice  or  request,  nor  this  provision 
therefor,  shall  affect  any  discretion  herein  giv- 
en to  the  said  Trustees  to  determine  whether 
or  not  they  will  take  action  in  respect  to  such 
default,  or  to  take  action  without  such  request. 

The  Trustees  shall  be  protected  in  acting  up- 
on any  request,  consent,  certificate,  bond,  af- 
fidavit, or  other  paper  or  document  believed 
by  them  to  be  genuine  and  to  be  signed  by  the 
proper  party  or  parties. 

Said  Trustees  shall  be  entitled  to  be  reim- 
bursed for  all  proper  outlays  of  every  sort  and 
nature  bv  them  incurred,  or  for  which  thev  mav 
be  obligated  in  the  discharge  of  this  trust,  and 
to  receive  a  reasonable  and  proper  compensa- 
tion for  any  duties  that  they  may  at  any  time 


160  TIMBER  BONDS 

perform  in  the  discharge  of  the  same,  and  shall 
have  a  lien  therefor  upon  the  mortgaged  prop- 
erty, prior  and  paramount  to  the  bonds  hereby 
secured. 

All  expenses,  fees,  taxes  and  disbursements 
of  any  kind  which  have  been  made,  or  which 
may  be  made  or  incurred  by  the  Trustees  in 
order  to  comply  with  any  law  or  laws  of  the 
State  of  Oregon  respecting  foreign  corpora- 
tions, or  relating  to  the  right,  authority,  or 
qualification  of  the  Trustees  to  accept  this  trust 
and  perform  their  duties  hereunder,  and  all 
liabilities  and  expenses  which  may  be  incurred 
by  them,  and  all  penalties,  judgments  or  for- 
feitures which  may  be  assessed,  levied,  or  re- 
covered against  the  Trustees  for  failure  to  com- 
ply with  any  such  law  or  laws,  shall  be  a  charge 
and  shall  constitute  a  lien  upon  the  mortgaged 
property  and  premises  prior  and  paramount 
to  the  bonds  hereby  secured.  In  case  at  any 
time  it  shall  be  necessary  and  proper  for  the 
said  Trustees,  or  their  successors,  to  make  any 
investigation  respecting  any  facts,  preparatory 
to  taking  or  not  taking  any  action  or  doing  or 
not  doing  anything  under  this  deed  of  trust, 
the  certificate  of  the  said  party  of  the  first  part 
under  its  corporate  seal  and  sworn  to  by  its 
President,  or  Secretary,  shall  be  sufficient  evi- 
dence of  such  fact  to  protect  the  said  Trustees 
or  their  successors,  in  any  action  that  they  may 
take  or  decline  to  take  by  reason  of  the  sup- 
posed existence  of  such  fact. 


TRUST  DEEDS  161 

Unless  it  shall  in  writing  expressly  agree  to 
do  so,  the  Trust  Company  shall  not  be  obligated 
to  pay  interest  on  any  sum  of  money  which 
may  be  deposited  with  it  under  any  of  the  pro- 
visions of  this  instrument,  but  if  the  Trust 
Company  shall  in  writing  expressly  agree  to 
pay  interest  on  any  such  deposits,  the  amount 
of  such  interest  shall  be  credited  to  or  paid 
into  the  fund  for  retiring  bonds  as  provided  for 
in  Article  VII  and  other  Articles  hereof. 


ARTICLE  XXXI. 

Except  and  unless  it  be  upon  his  individual 
endorsement  or  guarantee,  no  recourse  under 
any  obligation,  covenant  or  agreement  of  this 
instrument,  or  of  any  bond  or  coupon  hereby 
secured,  shall  be  had  against  any  incorporator, 
stockholder,  officer  or  director  of  the  Company, 
either  directly  or  through  the  Company  by  vir- 
tue of  any  statute.  Constitutional  provision, 
or  otherwise,  it  being  expressly  agreed  and  un- 
derstood that  this  mortgage  and  the  obligations 
hereby  secured  are  solely  corporate  obligations, 
and  that  no  personal  liability  whatever  (ex- 
cept it  arise  by  individual  endorsement  or 
guarantee)  shall  attach  to,  or  be  incurred  by 
the  incorporators,  stockholders,  officers  or  di- 
rectors of  the  Company,  or  any  of  them,  under 
or  by  reason  of  any  of  the  obligations,  cove- 
nants, or  agreements  contained  in  this  instru- 
ment, or  in  any  of  the  bonds  or  coupons  se- 


162  TIMBER  BONDS 

cured  hereby,  or  implied  therefrom,  and  that 
except  as  above  provided,  any  and  all  personal 
liability,  either  at  common  law  or  civil  law,  or 
in  equity,  or  by  statute,  of  every  such  incor- 
porator, stockholder,  officer  or  director,  is  here- 
by expressly  waived  by  each  and  every  person 
who  may  become  the  owner  of  any  one  or  more 
of  the  bonds  secured  hereby,  as  a  condition  of, 
and  in  consideration  for  the  execution  and  issue 
of  this  mortgage  and  such  bonds  and  coupons. 

ARTICLE  XXXII. 

Union  Trust  Company  is  made  a  trustee 
hereunder  in  the  contemplation  and  belief  that 
it  is  now  and  will  continue  to  be  lawful  for 
said  corporation  to  act  as  Trustee  hereunder 
and  perform  all  the  duties  herein  imposed  upon 
or  entrusted  to  it  as  such  Trustee  without  the 
necessity  of  said  corporation  qualifying  under 
the  Statutes  of  the  State  of  Oregon  to  do  busi- 
ness in  that  State,  and  without  the  necessity  of 
said  corporation  complying  with  the  require- 
ments of  any  other  Oregon  statute  or  law  now 
in  force  or  which  may  hereafter  be  enacted; 
and  should  it  prove  at  any  time  that  said  Union 
Trust  Company  is  not  now  legally  entitled  to 
accept  this  Trust,  act  as  Trustee  hereunder  and 
perform  all  the  duties  imposed  hereunder  and 
exercise  all  the  rights  conferred  hereby;  or  if 
for  any  reason,  by  the  enactment  of  statutory 
law,  by  the  failure  to  comply  with  any  law,  or 


TRUST  DEEDS  163 

otherwise  it  shall  subsequently  be  or  become 
unlawful  for  said  Union  Trust  Company  to  so 
act,  then  and  in  that  event  the  entire  rights, 
duties  and  authority  herein  intended  to  be 
granted  to  and  conferred  upon  said  Union 
Trust  Company  and  Frederick  H.  Rawson 
jointly  or  upon  either  of  them  as  Trustees  here- 
under, shall  immediately  and  ipso  facto  vest 
in  and  be  held  and  exercised  by  said  Frederick 
H.  Rawson  alone,  and  his  successor  or  succes- 
sors. 

And  in  case,  at  any  time  when  action  hereun- 
der may  be  necessary  or  authorized,  it  shall  be 
impossible  or  illegal  or  be  deemed  impossible 
or  illegal  by  said  Union  Trust  Company,  or  by 
its  successor,  as  Trustee,  for  it,  the  Union 
Trust  Company,  or  such  successor  Trustee,  to 
do  or  perform  any  act  or  acts  necessary  or 
proper  for  it  to  do  as  Trustee  under  the  terms 
of  this  instrument,  then  and  in  such  case  the 
said  Frederick  H.  Rawson  or  his  successor  for 
the  time  being  shall  have  full  power  and  au- 
thority to  perform  all  and  every  such  act  or 
acts  of  whatsoever  nature  as  fully  as  if  he  had 
alone  in  the  first  instance  been  herein  specifi- 
cally authorized  thereunto;  and  in  that  event 
any  and  all  acts  so  done  by  the  said  Frederick 
H.  Rawson,  Trustee,  or  his  successor  in  the 
Trust,  shall  have  the  same  effect  as  if  done  by 
the  said  Trustee  jointly  with  Union  Trust 
Company,  Trustee,  or  its  successor  trustee — 
excepting,  always,  that  no  instrument  given  to 


164  TIMBER  BONDS 

discharge  or  cancel  this  mortgage  or  deed  of 
trust  under  Article  XIY  hereof  shall  be  eifect- 
ive  unless  signed  by  both  the  Trustees  named 
herein  or  by  their  successors. 

ARTICLE  XXXIII. 

The  word  ''Trustees"  as  used  in  this  instru- 
ment shall  be  held  and  construed  to  mean 
the  Trustees  herein  named  or  their  successor 
or  successors  for  the  time  being  in  the  trust 
hereby  created;  the  words  "the  Company" 
shall  be  held  and  construed  to  mean  Linn  and 
Lane  Timber  Company,  its  successors  and  as- 
signs; and  the  words  ''the  Grantors"  shall  be 
held  and  construed  to  mean  and  include  Linn 
and  Lane  Timber  Company,  and  C.  A.  Smith 
Lumber  and  Manufacturing  Company,  and 
their  successors  and  assigns. 

And  wherever  the  name  "Lvon,  Gary  & 
Company"  is  used  herein,  it  shall  be  held  and 
construed  to  mean  Lyon,  Gary  &  Company,  the 
present  Illinois  corporation,  or  such  person, 
firm  or  corporation  as  may  succeed  said  cor- 
poration according  to  the  terms  of  this  instru- 
ment. 

ARTICLE  XXXIV. 

This  instrument  and  the  negotiations  lead- 
ing up  thereto,  and  any  that  may  follow  in  car- 
rying out  the  purposes  of  this  bond  issue  and 
the  negotiation  and  sale  of  the  bonds  issued 
liereunder,  are  hereby  declared  to  be  and  shall 


TRUST  DEEDS  165 

iu  all  things  be  deemed  and  treated  as  an  Ore- 
gon contract  entered  into  l)etween  the  parties 
hereto  and  the  pnrchaser  or  holders  of  all  or 
any  portion  of  tlie  bonds  issued  hereunder,  and 
shall  be  governed  by  the  laws  of  the  said  State 
of  Oregon,  to  the  same  effect  as  if  this  contract 
had  been  executed  in  that  State,  and  all  the  ne- 
gotiations above  described,  occurring  both  be- 
fore and  after  the  execution  of  this  instrument 
(instead  of  but  a  portion  of  them)  had  been 
had  in  that  State. 

And  each  Article  of  this  instrument  is  hereby 
declared  to  be  and  shall  be  held  to  be  a  separ- 
ate and  independent  clause  thereof. 

ARTICLE  XXXV. 

Union  Trust  Company,  and  Frederick  H. 
Rawson,  hereby  accept  the  trusts  herein  and 
hereby  declared  and  created,  and  agree  to  per- 
form the  same  upon  the  terms  and  conditions 
hereinbefore  set  forth. 

ARTICLE  XXXVI. 

For  convenience  in  recordation  this  instru- 
ment is  executed  in  six  counterparts,  each  of 
which  shall  for  all  purposes  be  considered  and 
treated  as  an  original. 

In  witness  whekeof,  the  said  Linn  and  Lane 
Timber  Company;  the  said  C.  A.  Smith  Lum- 
ber AND  Manufacturing  Company,  and  the  said 
Union  Trust  Company,  have  caused  this  in- 
strument to   be  executed   in    their    corporate 


166  TIMBER  BONDS 

names  by  tlieir  respective  Presidents  or  Vice- 
Presidents,  and  their  corporate  seals  to  be 
hereunto  affixed  and  attested  by  their  respect- 
ive secretaries;  and  the  said  Frederick  H. 
Rawson  has  signed  and  sealed  the  same,  all  in 
the  presence  of  witnesses,  on  the  date  first  here- 
in written. 

Linn  and  Lane  Timbee  Company, 
By  C.  A.  Smith, 

Its President. 

Attest : 

Chaeles  L.   Teabeet, 

Its  Secretary. 
Witness  to  the  execution  of  this 
instrument  by  Linn  and  Lane 
Timber  Company:  [coepoeate  seal] 

John  Lind, 
A.  Ueland, 

C.  A.  Smith  Lumbee  and   Manufacturing 
Company, 

By  C.  A.  Smith, 

Its President. 

Attest : 

Chaeles  L.  Teabeet, 
Its  Secretary. 
Witness  to  the  execution  of  this 

instrument  by  C.  A.  Smith  Lum- 
ber and  Manufacturing'  Company: 

John  Lind,  [coepoeate  seal] 

A.  Ueland. 


trust  deeds  167 

Union  Trust  Company, 
By  Frederick  Rawson, 
[corporate  seal]  lis President 

Attest : 

RuFus  F.  Chapin, 

Its  Secretary. 
Witness  to  the  execution  of  this 
Instrument  by  Union  Trust  Company : 
Gail  Dray, 
John  U.  Switzer. 

Frederick  H.  Rawson.      [seal] 
Witness  to  the  execution  of  this 
instrument  by  Frederick  H.  Raw- 
son: 

Gail  Dray, 
John  U.  Switzer. 

State  op  JMinnesota,      I 
County  op  Hennepin,     j 

On  this  9th  day  of  June,  1910,  before  me,  W. 
IVI.  Jerome,  a  Notary  Public  in  and  for  said 
State  and  County,  appeared  C.  A.  Smith,  to  me 
personally  known,  who  being  duly  sworn,  did 

say  that  he  is  the President  of 

Linn  and  Lane  Timber  Company,  a  IMinnesota 
corporation,  and  that  the  seal  affixed  to  said 
foregoing  instrument  is  the  corporate  seal  of 
said  corporation,  and  that  said  instrument  was 
signed  and  sealed  in  behalf  of  said  corporation 


168  TIMBER  BONDS 

by  authority  of  its  Board  of  Directors,  and  said 
C.  A.  Smith  acknowledged  said  instrument  to 
be  the  free  act  and  deed  of  said  corporation. 

In  testimony  whekeop,  I  have  hereunto  set 
my  hand  and  affixed  my  official  seal  at  my  of- 
fice in  said  State  and  County,  this  the  day  and 
year  first  in  this  my  certificate  written. 

My  Notarial  Commission  is  dated  June  26, 
1907,  and  expires  June  26,  1914. 

W.  M.  Jerome, 

Notary  Public,  Hennepin  County, 

State  of  Minnesota. 

Certificate  of  Magistracy  attached. 

[notarial  seal] 

State  op  Minnesota,      ) 

r  SS 

County  of  Hennepin.     | 

On  this  9th  day  of  June,  1910,  before  me,  W. 
M.  Jerome,  a  Notary  Public  in  and  for  said 
State  and  County,  appeared  C.  A.  Smith,  to 
me  personally  known,  who  being  duly  sworn, 

did  say  that  he  is  the President  of 

C.  A.  Smith  Lumber  and  Manufacturing  Com- 
pany, a  Minnesota  corporation,  and  that  the  seal 
affixed  to  said  foregoing  instrument  is  the  cor- 
porate seal  of  said  corporation,  and  that  said 
instrument  was  signed  and  sealed  in  behalf  of 
said  corporation  by  authority  of  its  Board  of 
Directors,  and  said  C.  A.  Smith  acknowledged 
said  instrument  to  be  the  free  act  and  deed  of 
said  corporation. 


TRUST  DEEDS  169 

In  testimony  wheeeof,  I  have  hereunto  set 
my  hand  and  affixed  my  official  seal  at  my  office 
in  said  State  and  County,  this  the  day  and  year 
first  in  this  my  certificate  written. 

Mj  Notarial  Commission  is  dated  June  26t]i, 
1907,  and  expires  June  26th,  1914. 

W.  M.  Jerome, 
[notakial  seal] 

Notary  Piihlic,  Hennepin  County, 
State  of  Minnesota. 

State  of  Illinois,   | 
County  of  Cook,     j 

On  this  11th  day  of  June,  1910,  before  me,  H. 
L.  Benson,  a  Notary  Public  in  and  for  said 
State  and  County,  appeared  Frederick  H.  Raw- 
son,  to  me  personally  known,  who  being  duly 
sworn,  did  say  that  he  is  the Presi- 
dent of  Union  Trust  Company,  an  Illinois  cor- 
poration, and  that  the  seal  affixed  to  said  fore- 
going instrument  is  the  corporate  seal  of  said 
corporation,  and  that  said  instrument  was 
signed  and  sealed  in  behalf  of  said  corporation 
by  authority  of  its  Board  of  Directors,  and  said 
Frederick  H.  Rawson  acknowledged  said  in- 
strument to  be  the  free  act  and  deed  of  said 
corporation. 

In  testimony  whereof,  I  have  hereunto  set 
my  hand  and  affixed  my  official  seal  at  my  of- 
fice in  said  State  and  County,  this  the  day  and 
year  first  in  this  my  certificate  written. 


170  TIMBER  BONDS 

My  Notarial  Commission  is  dated  Oct.  12, 
1906,  and  expires  Oct.  12,  1910. 

H.  L.  Benson, 

Notary  Public,  Cook  County, 

State  of  Illinois. 

Certificate  of  Magistracy  attached. 

[notarial  seal] 


State  of  Illinois, 
County  of  Cook. 

Before  me,  H.  L.  Benson,  the  undersigned,  a 
Notary  Public  in  and  for  the  State  and  County 
aforesaid,  personally  appeared  the  above  nam- 
ed Frederick  H.  Eawson,  to  me  known  to  be 
the  individual  described  in  and  who  executed 
the  above  instrument,  and  the  said  Frederick 
H.  Eawson  acknowledged  that  he  executed  the 
same,  this  lltli  da}^  of  June,  1910. 

My  Notarial  Commission  is  dated  Oct.  12, 
1906,  and  expires  Oct.  12,  1910. 

Witness  my  hand  and  official  seal  at  office  in 
Chicago,  Cook  County,  Illinois,  on  the  date 
above  written, 

H.  L.  Benson, 

Notary  Public,  Cook  County, 

State  of  Illinois. 

[notarial  seal] 


trust  deeds  171 

State  of  Oregon, 


ss 
County  of  Coos.      I 

I  hereby  certify  that  the  withiu  instrmnent 

was  filed  for  record  June  16,  1910,  at  2  o'clock 

and minutes  P.  M.  and  recorded  June  16, 

1910,  in  book  25  of  Mortgages  in  page  438 — 

Indexed  in  Chattel  Mortgages  Vol.  5. 

James  Watson, 

County  Clerk. 


State  of  Oregon,     ") 
County  of  Curry,   j 

I  certify  that  the  within  was  received  and 
duly  recorded  by  me  in  Curry  County  Records 
Book  of  Mortgages  Vol.  5  Page  461  to  479  on 
the  18th  day  of  June,  1910,  filed  June  18th,  1910, 
at  9  A.  M. 

Geo.  W.  Smith, 
County  Clerli. 


State  of  Oregon,         ) 
County  of  Douglas,    j 

I  hereby  certify  that  the  within  was  recorded 
be  me  in  Douglas  County  Records,  Book  of 
Mortgages  Vol.  27  Pages  172  to  196  on  the  15th 
day  of  June,  1910. 

E.  H.  Lenox, 
County  Clerk. 
Filed  June  15,  1910  at  1 :15  P.  M. 

E.  H.  Lenox, 
County  Clerk. 


172  timber  bonds 

State  of  Oregon,    ) 
Lane  County.  ) 

I  hereby  certify  that  the  withiu  instrument 
was  filed  for  record  this  21  day  of  June,  1910, 
at  2 :30  o  'clock  P.  M.  and  duly  recorded  in  Book 
29  page  329  Lane  County  Mortgage  records. 

E.  U.  Lee, 
County  Clerk, 
Per  J.  A.  Fountain, 
Deputy. 

State  of  Oregon,        ) 

r  SS 

County  of  Lincoln,   j 

I  hereby  certify  that  the  within  instrument 
was  received  for  record  on  the  15th  day  of 
June,  1910,  at  8  o'clock  A.  M.  and  recorded  in 
Book  10  on  page  102  record  of  Mortgages  of 
said  County.  Witness  my  hand  and  seal  of 
County  affixed. 

Ira  Wade, 
County  Clerk. 
By  Ruth  Ofstedahl, 
Deputy. 


State  of  Oregon,    , 
County  of  Linn. 


I  hereby  certify  that  the  within  was  received 
and  duly  recorded  by  me  in  Linn  County  Rec- 
ords, Book  of  Mtgs.  Vol.  51,  Pages  158  to  202 
on  the  15th  dav  of  June,  1910  at  8:00  o'clock 
A.  M. 

Grant  Froman, 
Recorder  of  Linn  County,  Oregon. 


TRUST  DEEDS  173 


FIRST  MORTGAGE 


SOUTHERN   TIMBER  COMPANY 

TO 

UNION   TRUST   COMPANY 

AND 

JOHN    K.    LYON 

TRUSTEES^ 


DATED  NOVEMBER  17,  1910. 


TO  SECURE  THE  PAYMENT  OF  $200,000  SIX  PER  CENT 

GOLD  BONDS  OF  SOUTHERN  TIMBER  COMPANY, 

DATED  NOVEMBER  19,   1910. 


174  TIMBER  BONDS 

THIS  INSTRUMENT,  made  and  entered  into 
this  seventeenth  day  of  November,  A.  D., 
1910,  by  and  between  Southern  Timber  Com- 
pany, a  corporation  organized  and  existing 
under  and  by  virtue  of  the  laws  of  the  State 
of  Georgia  (sometimes  liereinafter  for  brev- 
ity called  the  Company),  party  of  the  first 
part,  and  Union  Trust  Company,  a  corpora- 
tion organized  and  existing  under  and  by 
virtue  of  the  laws  of  the  State  of  Illinois 
(sometimes  hereinafter  referred  to  as  the 
Corporation  Trustee),  and  John  K.  Lyon,  of 
Hubbard  Woods,  Cook  County,  State  of  Illi- 
nois, as  Trustees,  parties  of  the  second  part, 

WITNESSETH  : 

Wheeeas,  Southern  Timber  Company  is  the 
owner  of  certain  timber,  lands,  logging  rights, 
logging  plant  and  equipment,  logging  railroad 
and  equipment  and  other  property  in  Liberty 
County,  State  of  Georgia;  and  has  full  power 
and  authority  imder  its  charter  and  the  laws 
of  the  State  of  Georgia  to  borrow  money  for 
the  transaction  of  its  business  in  the  exercise 
of  its  corporate  powers,  to  issue  its  negotiable 
bonds  to  evidence  the  indebtedness  thus  in- 
curred, and  to  mortgage  its  property  to  secure 
the  payment  of  the  same ;  and 

Whereas,  by  the  unanimous  action  of  its 
Board  of  Directors,  concurred  in  by  the  own- 
ers and  holders  of  its  entire  capital  stock  (both 
of  which  actions  have  been  duly  taken  and  ex- 
pressed according  to  law)    the  Company  has 


TRUST  DEEDS  175 

resolved  to  borrow  money  for  its  corporate 
purposes,  and  to  issne  and  dispose  of  its  nego- 
tiable mortgage  bonds  tlierefor;  and  to  secure 
the  payment  of  said  bonds,  together  with  in- 
terest thereon,  b}^  a  mortgage  or  deed  of  trust 
in  the  form  of  this  instrument  upon  its  prop- 
erty hereinafter  described,  together  with  the 
rents,  issues  and  profits  of  the  same,  and  which 
mortgage  or  deed  of  trust  shall  ])e  a  first  lien 
thereon;  and 

Wheeeas,  by  unanimous  aetion  of  its  Board 
of  Directors,  concurred  in  by  the  owners  and 
holders  of  its  entire  capital  stock  (both  of 
which  actions  have  been  duly  taken  and  ex- 
pressed according  to  law)  the  Company  has 
further  resolved  that  said  bonds  shall  bear  date 
November  19,  1910,  shall  be  for  the  aggregate 
amount  of  Two  Hundred  Thousand  (200,000) 
Dollars,  shall  be  200  in  number  consecutively 
numbered,  and  in  denominations  of  $1,000,  and 
which  bonds  shall  become  due  and  payable  as 
follows,  to  wit: 

Bonds  numbered.  Maturities. 

1  to     33  inclusive on  May  15,  1911; 

34  to     66  inclusive on  November  15,  1911 

67  to     99  inclusive on  May  15,  1912; 

100  to  132  inclusive on  November  15,  1912 

133  to  165  inclusive on  May  15,  1913; 

166  to  200  inclusive on  November  15,  1913 

all  of  which  bonds  shall  be  payable  to  bearer 
(unless  registered),  in  gold  coin  of  the  United 
States  of  America  of  the  standard  of  weight 
and  fineness  existing    on    November  19,  1910, 


176  TIMBER  BONDS 

notwithstanding  any  law  which  may  now  or 
hereafter  make  anything  else  legal  tender  in 
payment  of  debts,  at  the  banldng  house  of 
Union  Trust  Company  in  the  City  of  Chicago, 
State  of  Illinois,  together  with  interest  on  said 
bonds  at  the  rate  of  six  (6)  per  centum  per 
annum,  which  interest  shall  be  similarly  pay- 
able in  like  gold  coin  May  15,  1911,  and  semi- 
annually thereafter  on  the  fifteenth  day  of  No- 
vember and  the  fifteenth  day  of  May  in  each 
year  until  the  principal  sum  shall  be  fully  paid, 
upon  the  presentation  and  surrender  of  the 
coupons  annexed  to  each  of  said  bonds  as  they 
respectively  become  due,  at  the  place  of  pay- 
ment of  the  principal  of  said  bonds;  that  the 
said  bonds  shall  be  executed  in  the  name  of  the 
Company  by  its  President  (or  its  Vice  Presi- 
dent) and  Secretary,  with  its  corporate  seal 
affixed,  and  that  the  coupons  issued  to  evidence 
the  interest  upon  said  bonds  until  their  maturity 
shall  be  authenticated  by  the  engraved  facsimile 
signature  of  the  present  Treasurer  of  the  Com- 
pany ;  and  that  each  of  said  bonds,  and  each  of 
the  coupons  thereto  attached,  and  the  Trustee 's 
and  Eegistrar's  certificates  endorsed  thereon 
shall  be  substantially  in  the  forms  following, 
to  wit: 


TRUST  DEEDS  177 

UNITED  STATES  OF  AMERICA 
State  of  Georgia. 

$1000  Number $1000 

SOUTHERN  TIMBER  COMPANY 

First  Mortgage  Six  Per  Cent  Sinking  Fund 
Gold  Bond. 

For  value  received,  SOUTHERN  TIMBER 
COMPANY,  a  corporation  organized  and  exist- 
ing imder  and  by  \drtue  of  the  laws  of  the  State 
of  Georgia,  and  having  its  principal  office  in 
Liberty  County,  said  State,  hereby  promises  to 
pay  to  the  bearer  hereof,  or  in  case  this  bond 
be  registered  then  to  the  registered  holder  here- 
of. One  Thousand  Dollars  on  the  fifteenth  dav 

of ,  19 .... ,  and  to  pay  interest 

thereon  from  the  date  hereof  at  the  rate  of  six 
(6)  per  centum  per  annum,  payable  semian- 
nuallv,  on  the  fifteenth  dav  of  Mav  and  the  fif- 
teenth  day  of  November  in  each  year,  upon  the 
presentation  and  surrender  of  the  coupons  here- 
to annexed  as  they  severally  become  due,  both 
principal  and  interest  being  payable  at  the 
l)anking  house  of  Union  Trust  Company  m  the 
City  of  Chicago,  State  of  Illinois,  in  gold  coin 
of  the  United  States  of  America,  of  or  equal 
to  the  present  standard  of  weight  and  fineness, 
notwithstanding  any  law  which  may  now  or 
hereafter  make  anything  else  legal  tender  for 
the  payment  of  debts,  without  deduction  for 
any  United  States,  State,  County,  Municipal  or 
other  tax  or  taxes,  or  governmental  or  other 
charges,  which  the  maker  hereof,  or  its  succes- 


178  TIMBER  BONDS 

sors  or  assigns,  or  the  Trustees  or  either  of 
them  hereinafter  mentioned,  may  he  required 
or  i)ermitted  to  pay,  or  to  deduct  or  retain 
therefrom  luider  or  ])y  reason  of  any  present  or 
future  law. 

This  hond  is  one  of  a  series  of  200  honds  in 
denominations  of  $1,000,  numhered  consecutive- 
ly from  1  to  200,  hoth  numhers  inclusive,  and 
which  are  due  and  payahle  as  follows :  Bonds 
numbered  1  to  33  inclusive.  May  15,  1911; 
Bonds  numbered  34  to  66  inclusive  November 
15,  1911;  Bonds  numbered  67  to  99  inclusive 
May  15,  1912;  Bonds  numbered  100  to  132  in- 
clusive November  15,  1912;  Bonds  numbered 
133  to  165  inclusive  May  15,  1913 ;  and  Bonds 
numbered  166  to  200  inclusive  November  15, 
1913 ;  all  issued  imder  the  provisions  of  and  all 
equally  secured  by  a  first  mortgage  or  deed  of 
trust  dated  November  17,  1910,  duly  authorized, 
executed,  acknowledged  and  delivered  by  the 
maker  hereof  to  Union  Trust  Company  of  Chi- 
cago, Illinois,  and  John  K.  Lyon,  of  Hubbard 
Woods,  Cook  County,  Illinois,  as  Trustees, 
which  mortgage  or  deed  of  trust  conveys  tim- 
ber, lands,  logging  rights,  a  logging  railroad, 
logging  equipment  and  other  property  in  Lib- 
erty County,  Georgia,  and  which  has  been  prop- 
erly recorded  in  said  county.  For  a  more  com- 
plete description  of  the  property  thereby  mort- 
gaged; the  nature  and  extent  of  the  security; 
the  description  of  the  bonds  thereby  secured 
and  the  rights  of  the  holders  thereof  under  the 


TRUST  DEEDS  179 

same  and  Hit'  terms  and  conditions  upon  wliicli 
said  bonds  are  issned,  reference  is  lierebv  made 
to  said  mortgage  or  deed  of  trust  with  tlie  same 
force  and  effect  as  if  the  provisions  thereof 
were  herein  fully  set  forth. 

This  bond  may  be  redeemed  in  the  manner 
provided  in  said  mortgage  or  deed  of  trust,  at 
any  interest  payment  date  before  its  date  of  ab- 
solute maturity  upon  payment  to  the  holder 
hereof,  or  to  said  Union  Trust  Company,  Trus- 
tee, for  the  benefit  of  such  holder,  of  the  prin- 
cipal hereof,  together  with  all  interest  due  here- 
on at  the  date  fixed  for  such  redemption,  and  a 
premium  of  three  (3)  per  centum  on  the  prin- 
cipal hereof ;  and  in  event  of  default  as  defined 
in  the  aforesaid  mortgage  or  deed  of  trust,  the 
principal  of  this  bond  may  be  declared  and  be- 
come due  and  payable  in  the  manner  and  with 
the  effect  therein  provided. 

This  bond  shall  pass  by  delivery  unless  reg- 
istered, but  it  may  be  registered  as  to  the  prin- 
cipal hereof  in  the  holder's  name  on  registra- 
tion books  kept  for  that  purpose  by  said  Union 
Trust  Company,  Registrar,  such  registry  being 
noted  hereon  by  said  Registrar,  after  which 
only  such  registered  holder  shall  be  entitled  to 
receive  the  principal  hereof;  and  if  registered 
no  subsequent  transfer  hereof  shall  be  valid, 
unless  made  on  said  Registrar's  books  and 
similarlv  noted  hereon;  but  the  same  mav  be 
discharged  from  registry  by  transfer  to  bearer, 
after  which  it  shall  l)e  transferable  by  delivery. 


180  TIMBER  BONDS 

It  may  be  registered  again,  however,  in  the 
manner  above  provided.  The  registry  of  this 
bond  shall  not  impair  the  negotiability  of  the 
coupons,  but  they  shall  continue  to  be  transfer- 
able by  delivery  notwithstanding  such  regis- 
tration. 

The  maker  hereof  hereby  consents  in  case  of 
the  foreclosure  of  the  mortgage  or  deed  of  trust 
given  to  secure  the  payment  of  the  said  bonds, 
to  the  entry  of  a  deficiency  judgment  against 
it,  and  that  the  same  may  be  effected  by  appro- 
priate order  or  decree  in  any  such  foreclosure 
proceedings. 

This  bond  shall  not  be  obligatory  for  any 
purpose  until  it  shall  have  been  authenticated 
by  the  certificate  of  Union  Trust  Company,  one 
of  the  Trustees  under  said  mortgage  or  deed  of 
trust,  endorsed  hereon. 

IN  WITNESS  WHEREOF,  SOUTHERN 
TIMBER  COMPANY  has  caused  this  instru- 
ment to  be  signed  in  its  corporate  name  by  its 
President,  and  its  corporate  seal  to  be  here- 
unto affixed,  and  attested  by  its  Secretary ;  and 
the  interest  coupons  hereto  attached  to  be  au- 
thenticated by  the  facsimile  signature  of  its 
Treasurer,  this  the  nineteenth  day  of  Novem- 
ber  1910. 

SOUTHERN  TIMBER  COMPANY 

By 

Attest:  Its  President. 


Its  Secretary. 


TRUST  DEEDS  181 

$30  COUPON 

Ou  the  fifteenth  day  of ,  19 ,  . . . 

SOUTHERN  TIMBER  COMPANY,  a  Georgia 
corporation,  promises  to  pay  to  bearer  Thirty 
(30)  Dollars  in  gold  coin  of  the  United  States 
of  America  of  the  standard  existing  on  Novem- 
ber 19,  1910,  at  the  banking  lionse  of  Union 
Trust  Company  in  the  City  of  Chicago,  State  of 
Illinois,  without  deduction  for  taxes  or  other 
governmental  assessments  or  charges,  being  six 
months '  interest  due  that  date  on  its  first  mort- 
gage gold  bond  of  November  19,  1910. 

No 

Treasurer. 

TRUSTEE'S  CERTIFICATE. 

This  is  to  certify  that  this  is  one  of  the  bonds 
described  in  and  secured  by  the  mortgage  or 
deed  of  trust  within  referred  to. 

UNION  TRUST  COMPANY,  Trustee, 
By 


REGISTRATION 


Notice:  There  must   l)e    no    writing  in  this 


182 


TIMBER  BONDS 


form  except  by  the  Kegistrar,  the  Union  Trust 
Company. 


Date  of 
Registration 

Name  and  Address 
Registered  Owner 

Signature  of 
Registrar 

And  whebeas,  all  things  necessary  to  make 
said  bonds  when  executed  by  the  Company  and 
certified  by  the  Corporation  Trustee,  a  valid, 
binding,  legal,  negotiable  obligation  of  the 
Company,  and  this  instrument  a  valid  mort- 
gage to  secure  the  pa5^ment  thereof,  have  been 
done,  happened  and  been  performed: — 

Now,  THEREFOEE,  for  and  in  consideration  of 
One  Dollar  in  hand  paid  by  the  parties  of  the 
second  part  to  the  party  of  the  first  part,  the 
receipt  whereof  is  hereby  acknowledged,  and 
the  other  considerations  herein  expressed,  and 
in  order  to  secure  the  payment  of  the  principal 
and  interest  of  all  of  said  bonds  above  de- 
scribed, at  any  time  outstanding,  according  to 
their  tenor  and  effect,  and  to  secure  the  per- 
formance of  all  the  covenants  and  conditions 
herein  contained,  and  to  declare  the  terms  and 
conditions  upon  which  said  bonds  are  issued  or 
to  be  issued,  and  for  and  in  consideration  of 


TRUST  DEEDS  183 

the  acceptance  or  purchase  of  said  bonds  or 
any  of  them,  by  whomsoever  may  be  or  become 
the  hohlers  tliereof,  the  said  Southern  Timber 
Company  has  executed  and  delivered  these  pres- 
ents, and  hereby  grants,  sells,  bargains,  aliens, 
releases,  conveys,  assigns,  warrants,  transfers, 
and  mortgages  unto  said  Union  Trust  Com- 
pany and  John  K,  Lyon,  Trustees,  their  suc- 
cessors and  assigns,  with  full  subrogation  to 
any  and  all  warranties  or  rights  in  action 
against  previous  vendors  or  holders  or  other 
persons,  the  following  described  timber,  lands, 
logging  rights,  logging  railroad,  logging  equip- 
ment and  railroad  equipment  and  other  prop- 
erty,  all  now  lying,  being  and  situate  in  Liberty 
County,  State  of  Georgia,  to  wit: 

The  following  real,  personal  and  mixed  prop- 
erty, Ipng  in  the  15th  and  in  the  1458th  Dis- 
tricts, Georgia  Militia,  of  Liberty  County,  State 
of  Georgia,  to  wit: 

First:  The  railroad  owned  by  the  Company 
and  running  from  the  Byers-Allen  Lumber 
Company's  mill  at  Allenhurst,  toward  and  into 
a  portion  of  the  property  hereinafter  conveyed ; 
Second :  All  the  railroad  rail  owned  by  the 
Company,  being  about  fifteen  miles  of  new 
forty  pound  rail  stored  at  Allenhurst,  Georgia; 

Third:  The  equipment  of  said  railroad,  con- 
sisting of  cars,  engines,  et  cetera ; 

Fourth :  The  entire  logging  equipment  be- 
longing to  the  Company,  consisting  of  one  Mc- 
Giffert  loader,  one    four-line    Clyde    skidder, 


184  TIMBER  BONDS 

forty  steel  logging  trucks,  six  camp  box  cars, 

and  other  logging  equipment; 
Fifth:  Timber— 

A — All  the  trees  standing,  lying  or  being  on  the 
four  tracts  of  land  indicated  on  the  ac- 
companying map  as : 

(1)  Westfield  13901-2  acres; 

(2)  Hines  8901-2  acres; 

(3)  Oaklawn  308  acres;  and 

(4)  Bacon  1837  acres ; 

which  four  tracts  are  contiguous,  and  are  more 
particularly  described  as  follows,  to  wit : 

Beginning  at  a  point  on  the  Mcintosh  road 
indicated  by  a  star  on  the  map  hereto 
attached,  it  being  the  beginning  corner 
of  the  tract  held  in  fee  as  hereinafter 
described,  and  running  thence  with  the 
line  of  said  tract  held  in  fee  along  said 
Mcintosh  road  North  18i/^  degrees  East 
17.80  chains; 

Thence  South  8334  degrees  East  36.40 
chains ; 

Thence  North  2834  degrees  East  25.35 
chains  along  said  road; 

Thence  North  2  degrees  West  11  chains 
along  said  road; 

Thence  due  North  22.75  chains  along  said 
road ; 

Thence  North  814  degrees  East  3.14  chains 
along  said  road; 

Thence  North  4034  degrees  East  10.20 
chains  along  said  road; 


TRUST  DEEDS  185 

Tlieuce   North    Siy^    degrees   East   14.44 

chains  along  said  road; 
Thence   North    50%.    degrees    East    8.27 

chains  along  said  road; 
Thence  North  641/2  degrees  East  95  links 

along  said  road; 
Thence  North    86')4    degrees    East  15.75 

chains  along  said  road  to  a  gum ; 
Thence  North    GQi/o    degrees    East  12.15 

chains  along  said  road; 
Thence  leaving  the  line  of  the  tract  held  in 

fee,  North  2  degrees  East  13.18  chains ; 
Thence  North  51  degrees  West  10  chains ; 
Thence  North  85  degrees  West  13.70  chains ; 
Thence  North  35  degrees  East  19  chains  to 

a    stake    in    the    center    of    Mulberry 

Swamp : 
Thence  Westwardly  with  the  center  of  said 

Mulberry  Swamp  about  23  chains  more 

or  less  to  a  stake; 
Thence    South    14    degrees    West    19.40 

chains ; 
Thence    North    85    degrees    West    20.50 

chains ; 
Thence  South  31  degrees  West  9  chains ; 
Thence  South  4  degrees  West  3.50  chains; 
Thence    South    31    degrees    West    25.84 

chains ; 
Thence  due  AVest  20.69  chains; 
Thence  South  2  degrees  East  5  chains; 
Thence  due  East  5  chains  to  a  dam; 
Thence  South  14  degrees  East  4.27  chains ; 


186  TIMBER  BONDS 

Thence  South  70  degrees  West  5.70  chains ; 

Thence  North  15  degrees  East  4  chains ; 

Thence  Sonth  80  degrees  West  19.50  chains ; 

Thence  Nortli  70  degrees  West  25  chains; 

Thence  Sonth  75  degrees  West  8  chains ; 

Thence  South  11  degrees  West  38.82  chains ; 

Thence  South  89  degrees  West  109  chains ; 

Thence  South  85  degrees  West  34  chains  to 
the  line  of  the  right  of  way  of  Atlantic 
Coast  Line  Eailroad  Company,  a  point 
situated  2,370  feet  Northeast  from  the 
crossing  of  the  public  road  leading  from 
Allenhurst  to  Hines^dlle; 

Thence  Southwest  along  the  line  of  the 
right  of  way  of  the  Atlantic  Coast  Line 
Eailroad  23.50  chains  to  a  stake  on  the 
right  of  way  of  the  said  Atlantic  Coast 
Line  Railroad  Company; 

Thence  South  2  degrees  West  73.50  chains ; 

Thence  North  85  degrees  East  24.76 
chains ; 

Thence  South  30  degrees  East  36.05  chains, 
to  a  sweet  gum  near  Cockrane  Branch; 

Thence  South  4914  degrees  West  10.60 
chains ; 

Thence  South  84  degrees  West  12.12 
chains ; 

Thence  South  72%  degrees  West  12.12 
chains ; 

Thence  due  West  22.73  chains; 

Tlience  North  83  degrees  West  19.70 
chains ; 


TRUST   DEEDS  187 

Thence  South  49%  degrees  West  8.79 
chains  to  the  road  leading-  from  the  vil- 
lage of  Walthourville  to  Walthourville 
depot ; 

Thence  South  46  degrees  East  along  said 
road  12.83  chains; 

Thence  North  891/2  degrees  East  9.83 
chains ; 

Thence  South  li/^  degrees  East  7.94  chains 
to  a  stake  on  the  East  side  of  the  road 
to  Walthourville  depot; 

Thence  North  86i/^  degrees  East  50  chains ; 

Thence  North  75  degrees  East  11  chains 
to  a  stake  on  the  South  side  of  the  Wal- 
thourville road; 

Thence  South  10  degrees  West  14.75  chains ; 

Thence  North  80  degrees  East  7.40  chains ; 

Thence  South  21/2  degrees  West  26.17 
chains ; 

Thence  North  72  degrees  East  37.95 
chains ; 

Thence  South  551/2  degrees  East  56  chains ; 

Thence  South  7I1/2  degrees  East  45  chains 
to  a  line  of  the  Pleasant  Valley  900  acre 
tract,  a  part  of  the  fee  land  hereinafter 
described  and  known  as  the  Hilton  and 
Dodge  lands; 

Thence  with  the  Western  line  of  the  Hil- 
ton and  Dodge  lands  the  following- 
courses  and  distances- 
North  241/2  degrees  East  25.92  chains ; 

Thence   North    4i/>    degrees    East    38.88 


188  TIMBER  BONDS 

cliains  to  the  road  leading  to  Allenhurst ; 
Tlience  North  73  degrees  East  3.90  chains ; 
Thence   North    21^4    degrees    East    27.70 

chains ; 
Thence  South  86  degrees  East  34.48  chains ; 
Thence  leaving  the  line  of  the  Hilton  and 
Dodge  lands  and  running  North  6%  de- 
grees East  8.76  chains ; 
Thence  North  80  degrees  West  9.85  chains ; 
Thence  Nortli  13  degrees  East  2.41  chains ; 
Thence  North  61  degrees  East  7.21  cliains; 
Thence  North  38  degrees  West  8.48  chains ; 
Thence  North  2  degrees  East  7  chains; 
Thence  North  18  degrees  East  8.80  chains ; 
Thence  North  3  degrees  East  33.40  chains ; 
Thence  North  68  degrees  East  13.40  chains 
to  the  point  of  beginning  and  containing 
4426  acres; 
Together  with  the  right  to  enter,  cut  and  re- 
move the  said  timber  on  tracts  1,  2  and  3  first 
above  referred  to,  to  wit :  Westfield,  Hines  and 
Oaklawn  tracts,  at  any  time  within  fifteen  (15) 
years  from  August  11,  1908,  and  with  the  right 
to  extend  the  said  time  of  removal  for  an  ad- 
ditional term  of  five  (5)  years  (or  until  August 
11,  1928)  upon  the  payment  of  Three  Hundred 
(300)  Dollars  per  annum  to  E.  P.  Miller,  his 
heirs  or  assigns,  and  on  tract  4  to  wit:  The 
Bacon  tract  within  fifteen  (15)  years  from  May 
24,  1909,  and  with  the  right  to  extend  the  time 
of  removal  for  an  additional  term  of  five  (5) 
years  (or  until  May  24,  1929)  on  the  payment 


TRUST  DEEDS  189 

of  One  Hundred  and  Twenty  (120)  Dollars  per 
annum  to  E.  P.  Miller,  his  heirs  or  assigns. 

The  timber  and  rights  in  this  Item  conveyed 
being  the  same  acquired  by  E.  V.  Dunlevie  from 
said  E.  P.  Miller  by  deeds  dated  August  11, 
1908,  and  May  24,  1909,  and  recorded  at  pages 
531  et  seq.  in  Book  A-I,  and  at  pages  293  et  seq. 
of  Book  A-J,  in  the  office  of  the  Clerk  of  the 
Superior  Court  of  Liberty  County,  Georgia. 

B — All  the  pine  timber  on  the  tract  shown  on 

the  map  and  known  as  the  Quarterman  320 

acres,  which  is  more  particularly  described 

as  follows: 

Beginning  at  a  stake  on  the  South  side  of 
the  Sandy  Eun  Road,  a  corner  of  the 
Middleton  580-acre  tract  as  shown  on 
the  map; 

Thence  crossing  Sandy  Run  Road  North 
51  degrees  West  34.75  chains; 

Thence  South  67  degrees  West  25.70  chains 
to  a  stake  on  the  South  side  of  the  Sandy 
Run  Road; 

Thence  South  3I14  degrees  East  50.76 
chains ; 

Thence  South  55  degrees  East  12  chains; 

Thence  North  28  degrees  East  7  chains ; 

Thence  South  54  degrees  East  30.90  chains ; 

Thence  North  28  degrees  East  17  chains  to 
the  Southwest  corner  of  the  said  Mid- 
dleton 580  acres ; 

Thence  with  the  line  of  the  Middleton  580 


190  TIMBER  BONDS 

acres  North  19  degrees  East  20.60  chains ; 
Thence  still  with  the  line  of  the  Middleton 

580  acres  North  74  degrees  West  32.34 

chains  to  the    point  of  beginning — and 

containing  320  acres; 
Together  with  the  right  to  enter,  cut  and  re- 
move the  said  timber  at  any  time  within  fifteen 
(15)  years  from  November  30,  1908,  and  with 
the  right  to  extend  the  said  time  of  removal  for 
an  additional  five  (5)  years  (or  until  November 
30, 1928)  upon  the  payment  of  Twelve  (12)  Dol- 
lars per  annum  to  Mrs.  Rhonella  Hendry,  her 
heirs  or  assigns, — 

The  timber  and  rights  in  this  Item  conveyed 
being  the  same  acquired  by  E.  V.  Dunlevie  from 
said  Rhonella  Hendry  by  deed  dated  Novem- 
ber 30,  1908,  and  recorded  at  pages  94  rt  seq., 
in  Book  A-J  in  the  office  of  the  Clerk  of  the 
Superior  Court  of  Liberty  County,  Georgia. 

C — ^AU  pine  and  ash  timber  on  a  tract  desig- 
nated on  the  map  and  known  as  the  Mid- 
dleton 580  acres,  containing  by  re- survey 
582  acres,  and  more  particularly  described 
as  follows : 

Beginning  on  a  stake  near  the  South  side 
of  the  Sandy  Run  Road,  being  the  be- 
ginning corner  of  the  above  described 
Quarterman  320  acre  tract; 
Thence  with  the  line  of  the  Quarterman 
320  acre  tract  Soutli  74  degrees  East 
32.84  chains; 


TRUST  DEEDS  191 

Tlience    South     ^9    dogroos     West     20.60 

diaiiis ; 
Thence  leaving  the  line  of  the  Quarterman 

tract  South  78  degrees  East  50.15  chains ; 
Thence  North  77  degrees  East  18.81  chains 

to  tlie  Jonesville  Road  and  the  line  of 

the  Middleton  664  acre  tract,  a  part  of 

the  Hilton  and  Dodge  fee  lands; 
Thence  with  the  line  of    the    Hilton  and 

Dodge  fee  lands  the  following  courses 

and  distances : 

North  16  degrees  West  39.50  chains  to 
the  Sandy  Eun  Road; 
Thence  along  Sandy  Run  Road  South  87i/2 

degrees  East  19.60  chains; 
Thence  leaving  the  road  North  12  degrees 

East  11.64  chains; 
Tlience   North    50%    degrees  West   13.25 

chains ; 
Thence    North    I31/2    degrees    West    23.80 

chains ; 
Thence  leaving  the  Hilton  and  Dodge  fee 

lands,  due  West  50  chains; 
Then  due  South  6.79  chains; 
Thence  due  West  33.90  chains; 
Thence  South  3  degrees  West  33.34  chains 

to  the  place    of    beginning, — containing 

582  acres; 
Together  with  the  right  to  enter,  cut  and  re- 
move the  said  timber  at  any  time  on  or  before 
September  25,  1919;  the  timber  and  rights  in 
this  Item  conveyed  being  the  same  acquired  by 


192  TIMBER  BONDS 

E.  V.  Dunlevie  from  Hilton  &  Dodge  Lbr.  Co. 
by  deed  dated  May  28,  1908,  and  recorded  at 
pages  444  et  seq.,  in  Book  A-I  in  the  office  of 
the  Clerk  of  the  Superior  Conrt  of  Liberty 
Connty,  Georgia. 

D — All  timber  of  every  sort  and  description 
except  cypress  on  the  tract  shown  on  the 
map  as  the  Middleton  480  acres,  being 
known  as  the  Griffin  Plantation,  and  being 
the  tract  described  as  Exclusion  No.  1  in 
the  boundaries  of  the  lands  conveyed  in 
fee  as  hereinafter  described, — said  Griffin 
Plantation,  the  timber  on  which  is  hereby 
conveyed,  being  more  particularly  de- 
scribed as  follows: 
Beginning  at  a  pine  on  the   Sandy  Run 

Eoad  and  running 
Thence    North    71/0    degrees    West    33.33 

chains ; 
Thence  North  3  degrees  East  45  chains; 
Thence  South  81.50    degrees    East    64.30 

chains  to  a  pine ; 
Thence  South  ISi/o    degrees    East    12.10 

chains  to  a  light  wood  stump; 
Thence  South  81^  degrees  East  46  chains 

to  the  edge  of  the  old  road  to  Anderson 

Plantation ; 
Thence  along  the  North  side  of  said  road 

South  60  degrees  West  34  chains  to  the 

Sandy  Run  Road; 
Thence  North  55  degrees  West  8  chains ; 


TRUST  DEEDS  193 

Thence  Soiitli  67  degrees  West  3.40  chains ; 
Thence  North  88  degrees  West  28.75  chains 
to  the  point  of  beginning  and  containing 
480  acres; 
Together  vdih  the  right  to  enter,  cut  and  re- 
move the  said  timber  at  any  time  on  or  before 
February  11,  1914;  and  with  the  right  to  ex- 
tend the  time  of  removal  for  an  additional  term 
of  ten  (10)  years  (or  until  February  11,  1924) 
upon  the  payment  of  Three  Hundred  (300)  Dol- 
lars per  annum  to  Joseph  S.  and  Harry  R.  Mid- 
dleton,  their  heirs  or  assigns. 

The  timber  and  rights  in  this  Item  conveyed 
being  the  same  acquired  by  E.  V.  Dunlevie 
from  Hilton  &  Dodge  Lumber  Co.  by  deed  dated 
May  28, 1908,  and  recorded  at  pages  444  et  seq., 
in  Book  A-I  in  the  office  of  the  Clerk  of  the 
Superior  Court  of  Liberty  County,  Georgia. 

E — (1)  All  the  pine  timber  (except  that  which 
is  both  dead  and  fallen)  on  422  acres,  being 
the  Northwest  portion  of  the  982-acre  tract 
shown  on  the  map  and  known  as  the  Sulli- 
van tract,  which  422  acres  is  more  par- 
ticularly described  as  follows : 
Bounded  on  the  North  by  the  lands  of  Mrs. 

Howe;  on  the  East  by  the  lands  of  E.  P. 

Miller;  on  the  South  by  the  lands  of  C. 

B.  Godwin  and  J.  T.  Saunders,  and  on 

the  West  by  the  lands  of  the  Hilton  & 

Dodge  Lumber  Company; 
Together  with  the  right  to  enter,  cut  and  re- 


ia4  TIMBER  BONDS 

move  the  said  timber  at  any  time  on  or  before 
April  5,  1917. 

(2)  Also  all  the  timber  of  every  description 
on  a  560-acre  tract,  being  the  remainder  of  the 
said  982-acre  Sullivan  tract,  which  560  acres  is 
more  particularly  described  as  follows: 

Bounded  on  the  North  by  the  lands  of  the 
estate  of  Polly  Bacon,  on  the  East  by 
the  lands  of  LeConte;  on  the  South  by 
the  lands  of  Fraser  and  Allen,  and  on 
the  West  by  the  lands  of  D.  C.  Swindel, 
and  Fraser  and  Allen ; 

Together  with  the  right  to  enter,  cut  and  re- 
move the  said  timber  at  any  time  on  or  before 
April  19,  1917. 

The  timber  and  rights  hereby  conveyed  on 
the  said  two  tracts  being  the  same  acquired  by 
E.  V.  Dunlevie  by  deed  from  the  Brewster  Lum- 
ber Company,  dated  August  17,  1909,  and  rec- 
orded at  page  418  of  Book  A- J  of  the  records 
of  the  Clerk  of  the  Superior  Court  of  Liberty 
County,  Georgia. 

(3)  Also  all  the  timber  of  all  kinds  and  de- 
scription on  the  tract  shown  on  the  map  and 
known  as  the  Brewster  540  acres,  which  540 
acres  is  more  particularly  described  as  follows : 

Bounded  on  the  North  by  the  lands  of  es- 
tate of  George  Howe,  Joseph  R.  Bacon 
and  E.  P.  Miller;  on  the  East  by  the 
lands  of  Paul  LeConte  and  others;  on 
the  South  by  Sandy  Run  Road;  and  on 


TRUST  DEEDS  195 

the  West  by  the  lands  of  George  Howe 
and  F.  B.  Middleton; 
Together  with  the  right  to  enter,  cut  and  re- 
move the  said  timber,  and  the  timber  described 
in  Item  G  liereof,  at  any  time  on  or  before 
August  11,  1923,  and  with  the  right  to  extend 
the  said  time  of  removal  for  an  additional  term 
of  five  (5)  years  (or  until  August  11,  1928) 
upon  the  payment  of  Three  Hundred  (300)  Dol- 
lars per  annum  to  E.  P.  Miller,  his  heirs  or  as- 
signs, the  said  timber  and  rights  being  the  same 
acquired  by  E.  V.  Dunle\ae  from  said  E.  P. 
Miller  by  deed  dated  December  31,  1908,  and 
recorded  at  pages  135  et  seq.  in  Deed  Book  A-J 
in  the  office  of  the  Clerk  of  the  Superior  Court 
of  Liberty  County,  Georgia. 

The  above  three  tracts  of  422  acres  and  560 
acres  (which  taken  together  make  up  the  tract 
shown  on  the  map  as  the  Sullivan  tract)  and 
the  540-acre  Brewster  tract  (the  timber  on 
which  is  in  this  item  conveyed)  lie  contiguous 
to  each  other,  are  embraced  in  one  general 
boundary,  and  are  more  particularly  described 
as  follows: 

Beginning  at  a  large  gum  in  the  center  of 
the  Sullivan  Branch,  being  the  Western 
corner  of  a  tract  shown  on  the  map  as 
the  Brewster  or  Woodland  799  acres,  and 
known  in  the  records  as  the  LeConte 
tract ; 
Thence  South  40  degrees  West  48  chains 
to  a  stake  on  the  dam; 


19H  TIMBER  BONDS 

Thence  along  said  dam  North  54  degrees 

West  95.60  chains; 
Thence  North   221/0    degrees    East    60.75 

chains ; 
Thence  North  68  degrees  West  57.83  chains 

to  a  tree  marked  with  an  "X"  on  a  dam, 

being  the  line  of  the  Middleton  900-acre 

tract  as  shown  on  the  map,  and  part  of 

the  Hilton  and  Dodge  fee  land; 
Thence  with  the  lines  of  the  Hilton  and 

Dodge  fee  lands  the  following  courses 

and  distances : 
North  23  degrees  East  61.70  chains  to  the 

Sandy  Run  Road; 
Thence  along  said  road  North  49  degrees 

West  7.66  chains  to  an  oak  on  the  North 

side  of  Sandy  Run  Road ; 
Thence  South' 663/4    degrees    East    42.60 

■  chains ; 
Thence  North    27%    degrees    East    56.60 

chains  to  a  pine; 
Thence  South  68  degrees  East  49.33  chains 

to  a  dam; 
Thence  leaving  the  line  of  the  Hilton  and 

Dodge  fee  lands  South  47  degrees  East 

3281  feet  on  a  dam; 
Thence  South  731/0  degrees  West  1490  feet 

on  a  dam; 
Thence  South  45  degrees  West  1070  feet ; 
Thence  South  41  degrees  East  394  feet  on 

a  dam  to  the  North  side  of  the  Sandy 

Rim  Road; 


TRUST  DEEDS  197 

Thence  along  said  road  South  76  degrees 

West  100  feet; 
Thence  along  said  road  South  85l^  degrees 

West  1859  feet; 
Thence  along  said  road  South  78  degrees 

West  1353  feet; 
Thence  leaving  the  said  road  South  22^4 

degrees  East  120  chains  to  the  point  of 

beginning,  containing  1,522  acres. 

P — All  the  timber  on  the  tract  of  799  acres 
shown  on  the  map  as  the  Brewster  or 
AVoodland  tract,  known  on  the  records  as 
the  LeConte  tract,  and  being  generally  de- 
scribed as : 

Bounded  on  the  East  bj'  the  lands  of  Jo- 
seph LeConte ;  on  the  North  by  the  lands 
of  William  Jones;  on  the  West  by  the 
lands  of  Mrs.  Harden,  and  on  the  South 
by  Bull  Town  Swamp, 
which  said  799-acre  tract  is  more  particularly 
described  as  follows: 

Beginning  at  a  large  gum  in  the  middle  of 
a  swamp  on  Sullivan  Branch,  being  the 
beginning  corner  of  the  above  described 
Sullivan  tract,  and  running 
Thence  Southeastwardly  with  the  center  of 
Sullivan  Branch  to  a  dam  at  Flood  Gate 
hole; 
Thence  along  the  dam  North  461/2  degrees 
East  56.01  chains  to  the  center  of  the 
LeConte  branch ; 


198  TIMBER  BONDS 

Thence  along  the  center  of  LeConte  branch 
in  a  Northwesterly  direction  to  a  stake; 
Thence  South  39  degrees  West  40.92  chains 
to  the  place  of  Ijeginning,  containing  799 
acres ; 
Together  with  the  right  to  enter,  cut  and  re- 
move the  said  timber  at  anv  time  on  or  before 
April  19,  1917;    being   the    same    timber    and 
rights  acquired  by  E.  V.  Dunlevie  from  Brew- 
ster Lumber  Company  by  deed  dated  August 
17,  1909,  and  recorded   at   page  418  et  seq.  in 
Deed  Book  A-J  in  the  office  of  the  Clerk  of  the 
Superior  Court  of  Liberty  County,  Georgia. 

G — All  the  trees  of  every  «ort  and  description 
on  the  tract  shown  on  the  map  and  known 
as  the  Brewster  61.7  acres,  said  61.7  acres 
being  generally  described  as : 
Bounded  on  the  North  by  the  estate  of  Jo- 
seph E.  Bacon,  and  Lot  No.  11,  as  per 
survey  of  Capt.    Wm.    Hughes;  on  the 
East  l3y  Lot  No.  2 ;  on  the  South  by  lands 
formerly  belonging  to  the  estate  of  Jona- 
than Bacon,  and  on    the    West    by    the 
same,  this  being  the  Lot  No.  1  of  the 
Kedrou    Plantation    as    subdivided    by 
Wm.  Hughes, 
and  which  is  more  particularly   described  as 
follows : 

Beginning  at  a  stake  963  feet  East  of  the 
most  Easterlv  corner  of  the  Brewster 


TRUST  DEEDS  199 

540-acre  tract,  as  shown  on  the  map,  and 
running 
Thence  South  51  degrees  East  1,520  feet 

to  a  live  oak  on  a  dam; 
Thence  North  39i/o  degrees  East  2,019  feet; 
Thence  North  41  degrees  West  654  feet  to 

a  road; 
Thence  along  said  road  in  a  Southwesterly 

direction  475  feet  to  a  live  oak ; 
Thence  North  531/0  degrees  West  830  feet 

on  a  dam  to  a  corner  of  the  dam; 
Thence  South  SQi/o  degrees  West  1,560  feet 
to  the  point  of  beginning,  containing  61.7 
acres ; 
Together  with  the  right  to  enter,  cut  and 
remove  the  said  timber,    and    the    timber  de- 
scribed under  tract  3  of  Item  E  hereof,  at  any 
time  on  or  before  August  11,  1923,  and  with 
the  right  to  extend  the  said  term  of  removal 
for  five  (5)  years  (or  until  August  11,  1928) 
upon  the  payment  of  Three  Hundred  (300)  Dol- 
lars per  annum  to  E.  P.  Miller,  his  heirs  or  as- 
signs, the  said  timber  and  rights  in  this  Item 
conveyed  being  the  same  acquired  by  E.  V. 
Dunlevie  from  said  E.  P.  Miller  by  deed  dated 
December  31,  1908,  and  recorded  at  pages  135 
et  seq.  in  Deed  Book  A-J  in   the    office  of  the 
Clerk  of  the  Superior  Court  of  Liberty  County, 
Georgia. 

H — All  timber  on  a  tract  shown  on  the  map 
as  the  Screven  673  acres,  and  known  as  the 


200  TIMBER  BONDS 

Claybank  Plantation,  wbicli  673-acre  tract 
is  generally  described  as: 

Bounded  on  the  North  by  the  road  from 
Walthourville  to  Eiceboro;  on  the  East 
by  the  lands  of  the  estate  of  Brewster 
Fleming;  on  the  South  by  the  lands  of 
the  estate  of  Ned  Hargrave  and  Thomas 
Hargrave,  the  channel  of  the  swamp 
and  the  Homestead  Plantation,  and  the 
lands  of  Charlie  Roberts,  as  will  more 
fully  appear  by  a  plat  of  673  acres  and  of 
755  acres  of  the  Mallard  land  adjoining, 
dated  May  29,  1908,  made  by  J.  0.  Gar- 
rason.  Deputy  Surveyor  of  Liberty 
County,  Georgia, 

and  which  673-acre  tract  is  more  particularly 

described  as  follows: 

Beginning  on  a  stake  on  the  South  side  of 
the  Screven  road; 

Thence  South  2  degrees  West  6.35  chains 
to  the  line  of  the  1,500-acre  Homestead 
tract,  being  a  part  of  the  Hilton  and 
Dodge  fee  land; 

Thence  with  the  line  of  the  said  Hilton 
and  Dodge  fee  land  South  2  degrees 
West  27.75  chains  to  a  water  oak  on  a 
dam; 

Thence  South  4  degrees  East  26.60  chains 
to  a  water  oak ; 

Thence  South  88  degrees  East  12.40  chains 
to  a  ditch; 


TRUST  DEEDS  201 

Theuce    South    10     degrees     West    29.30 

cliaius ; 
Thence  South  3  degrees  West  9.50  chains 

on  a  dam  to  the  center  of  the  channel  of 

Axson  Swamp; 
Thence  along  the    center    of    said    Axson 

Swamp    South    66    degrees     East     1.40 

chains ; 
Thence  Soatli  SS  degrees  East  1.35  chains; 
Thence  South  76  degrees  East  1.90  chains ; 
Thence  North  80  degrees  East  8.70  chains; 
Thence  South  67  degrees  East  2.60  chains ; 
Thence  North  76  degrees  East  4  chains; 
Thence  South  79  degrees  East  7.20  chains ; 
Thence  South  11  degrees  West  1.60  chains ; 
Thence  North  84  degrees  East  4.40  chains 

to  a  corner  in    the    channel    of    Axson 

Swamp,  a  cypress  with  ash  pointers; 
Thence  leaving  the  line  of  the  Hilton  and 

Dodge  fee  lands  and  running  North  2  de- 
grees East  33.70  chains ; 
Thence     South    79    degrees    East    27.70 

chains ; 
Thence  South  88  degrees  East  42  chains ; 
Thence  North  5  degrees  East  33  chains  to 

the  Screven  Road,  a  stake; 
Thence  along  said  Screven  road  North  81 
degrees  West  26.20  chains; 
Thence   along   said   Screven    road   North 

781/2  degrees  West  90  chains  to  the  place 

of  beginning,  containing  673  acres. 
Togetlier  with  the  right  to  enter,  cut  and  re- 


202  TIMBER  BONDS 

move  the  same  at  any  time  on  or  before  June 
5,  1923,  and  with  the  right  to  extend  the  said 
term  of  removal  for  an  additional  period  of 
five  (5)  years  upon  the  payment  of  One  Hun- 
dred and  One  (101)  Dollars  per  annum  to  Ed- 
ward M.  Screven,  Sarah  L.  Mallard  and  Wal- 
lace W.  Mallard,  their  heirs  or  assigns,  the  tim- 
ber and  rights  in  this  Item  conveyed  being  the 
same  acquired  by  E.  V.  Dunlevie  from  said  Ed- 
ward M.  Screven,  and  others,  by  deed  dated 
June  5,  1908,  and  recorded  at  pages  460  et  seq., 
in  Deed  Book  A-I  in  the  office  of  the  Clerk  of 
the  Superior  Court  of  Liberty  County,  Georgia. 

I — All  timber  standing  or  lying  on  the    tract 
shown  on  the  maps  as  the  755-acre  Mallard 
tract,  which  is  generally  described  as : 
Bounded  on  the  North  by  the  lands  of  Sam 
Charlton,  Joe  Quarterman,  James    Por- 
ter, R.  L.  Page  and  Isaac  Morrison;  on 
the  East  by  tlie  lands  of  Edward  Way 
and  the  estate  of  W.  B,  Fleming;  on  the 
South  by  the  road  from  Walthourville  to 
Riceboro,  and  on  the  West  by  the  lands 
of  Joe  Quarterman, 
said  755-acre  tract  being  more  particularly  de- 
scribed as  follows: 

Beginning  at  a  stake  on  the  Screven  Road ; 
being  the  Northeast  corner  of  the  above 
described  Screven  tract  of  673  acres ; 
Thence  North  5  degrees  East  16  chains; 
Thence  North  88  degrees  East  5.70  chains ; 


TRUST  DEEDS  203 

Thence  North  61/2  degrees  East  20  chains ; 
Thence  North  60  degrees  West  16  chains ; 
Thence    North    26    degrees    East    36.50 

chains ; 
Thence  North  70  degrees  West  23  chains; 
Thence    North     29    degrees    East    58.75 

chains ; 
Thence    Sonth    82    degrees    East    20.80 

chains ; 
Thence  North  4  degrees  East  7.10  chains; 
Thence  South  88  degrees  East  14  chains; 
Thence    Sonth    34    degrees    W^est    22.20 

chains ; 
Thence     South    60    degrees     East    31.17 

chains ; 
Thence  crossing  a  dam  South  60  degrees 

East  1,210  feet  to  the  line  of  the  J.  B. 

Way  50-acre  tract; 
Thence  Soutli  30  degrees  West  10  chains; 
Thence  South  78  degrees  West  2.90  chains ; 
Tlionce  South  26  degrees  West  along  a  dam 

32,27  chains  to  a  stake  on  a  dam,  the 

Southwest  corner  of  the  J.  B.  Way  50 

acres ; 
Tlience  South  2S  degiees  West  51.73  chains 

on  a  dam; 
Thence  South  54  degrees  West  10  chains; 
Thence  South  5  degrees  East  14.50  chains 

to  a   stake   on  the   North   side   of  the 

Screven  road; 
Thence  along  said  road  North  81  degrees 


204  TIMBER  BONDS 

West  84.55  chains  to  the  place  of  be- 
ginning, and  containing  755  acres ; 
Together  with  the  right  to  enter,  cut  and  re- 
move the  said  timber  at  any  time  on  or  before 
June  5,  1923,  and  with  the  right  to  extend  this 
term  for  removal  for  an  additional  period  of 
five  (5)  years  (or  until  June  5,  1928),  upon  the 
payment  of  One  Hundred  and  Thirteen  (113) 
Dollars  and  twenty-five  (25)  cents  per  annum 
to  Sarah  L.  Mallard,  Marv  A.  Screven  and 
Wallace  W.  Mallard,  their  heirs  or  assigns, 
said  timber  and  rights  in  this  Item  conveyed 
being  the  same  acquired  by  E.  V.  Dunlevie  from 
said  Sarah  L.  Mallard  and  others,  by  deed 
dated  June  5,  1908,  and  recorded  at  pages  458 
et  seq.,  in  Deed  Book  A-I  in  the  office  of  the 
Clerk  of  the  Superior  Court  of  Liberty  County, 
Georgia. 

J — All  the  timber  and  trees  (except  75  or  80 
ornamental  trees  standing  around  the 
dwelling  house  and  along  the  public 
road,  which  runs  through  this  tract  of 
land)  on  the  tract  shown  on  the  map  as 
the  Gibson  868  acres,  which  is  generally 
described  as: 
All  that  tract  of  land  on  North  Newport 
Eiver  and  Peacock  Creek  near  the  vil- 
lage of  Eiceboro  and  known  as  the 
Hopewell  Plantation  except  a  right  of 
wav  heretofore  conveved  to  the  Florida 


TRUST  DEEDS  205 

Central  cV:  Peninsula  Railway  Company, 
and  containing  13  acres  more  or  less. 
Also  a  strip  of  land  100  feet  wide  running 
parallel  with  and  adjoining  tlie  right  of  way  of 
the  Seaboard  Air  Line  Railway,  near  the  108th 
mile  post  of  said  railway,  said  tract  being 
bounded  as  follows : 

On  the  North  by  the  lands  of  Ham,  John 
Osgood  and  Lambert;  on  the  East  by 
the  lands  of  Thomas  Baker  and  Dr. 
Samuel  Way;  on  the  South  by  North 
Newport  River,  and  on  tlie  East  by  Pea- 
cock Creek, 
and  which  868-acre  tract  is  more  particularly 
described  as  follows : 

Beginning  at  a  point  on  Peacock  Creek  and 
running  South  18    degrees    51    minutes 
West  9.50  chains; 
Thence  South  7H%    degrees    West    15.73 

chains; 
Thence    South   411/2    degrees    West    9.42 
chains  to  a  live  oak,  corner  on  Road  to 
Gibson's     near     junction     of     Sunbury 
Road ; 
Thence  along  said  road  North  57  degrees 

West  88.05  chains  to  a  corner; 
Thence  South  31  degrees  West  7.25  chains 
to  corner  on  Savannah  and  Riceboro 
road ; 
Thence  along  said  road  South  26  degrees 
East  58.80  chains  to  corner  at  fork  with 
Old  Landing  Road ; 


206  TIMBER  BONDS 

Thence  along  said  Old  Landing  Road 
North  85  degrees  30  minntes  West  28 
chains  to  corner; 

Thence  South  28  degrees  East  41.30  chains 
to  North  Newport  River ; 

Thence  following  the  meanderings  of  said 
North  Newport  River  in  an  Easterly  di- 
rection to  the  junction  with  Peacock 
Creek; 

Thence  up  Peacock  Creek  in  a  Northwest- 
erly direction  to  point  of  beginning, 
containing  868  acres,  less  18  acres  owned 
and  used  as  a  right  of  way  by  the  Sea- 
board Air  Line  Railway,  according  to 
a  plat  of  survey  made  by  Gignilliat  and 
Reppard,  Civil  Engineers,  dated  Jan- 
uary, 1909. 
By  a  recent  re-survey  the  said  tract  of  land 
is  described  as  follows: 

Beginning  at  a  stake  on  the  North  side  of 
North  Newport  River  about  28  chains 
West  of  the  Savannah  and  Riceboro 
Road; 

Thence  North  28  degrees  West  41.30  chains 
to  a  corner  on  the  South  side  of  Old 
Landing  Road; 

Thence  along  the  South  side  of  Old  Land- 
ing Road  South  85.30  degrees  East  28 
chains  to  a  corner  in  ditch  by  water  oak 
on  East  side  of  Savannah  and  Riceboro 
Road; 

Thence  along  said  east  side  of  said  road 


TRUST  DEEDS  207 

North  26  degrees  West  58.80  chains  to  a 

corner ; 

Thence  North  31  degrees  East  7.25  chains 

to  a  pine  tree  on  the  East  side  of  the 

public  road  to  Gibson's; 

Thence  along  said  public  road  South    57 

degrees  East  88.05  chains  to  a  live  oak; 

Thence  North  41/2  degrees  East  8.42  chains 

to  a  corner; 
Thence    North    46i/o    degrees    West    1.90 

chains  to  a  corner ; 
Thence    North    783/4    degrees    East    15.73 

chains  to  a  corner; 
Thence   North   23%    degrees    East    1.50 

chains  to  edge  of  marsh; 
Thence  continuing  on  same  line  to  a  stake 

on  South  side  of  Peacock  Creek; 
Thence  following  the  South  side  of  Peacock 
Creek  to  its  junction  with  North  New- 
port Eiver; 
Thence  along  the    North    side    of    North 
Newport  River  to  point    of    beginning, 
and  containing  868  acres; 
Together  with  the  right  to  enter,  cut  and  re- 
move the  said  timber  at  any  time  on  or  before 
February  15,  1929,  said  timber  and  rights  being 
the  same  acquired  by  E.  V.  Dunlevie  from  M. 
A.  Gibson,  by  deed  dated  February  15,  1909, 
and  recorded  at  pages  182  et  seq.,  in  Deed  Book 
A-J  in  the  office  of  the  Clerk  of  the  Superior 
Court  of  Liberty  County,  Georgia. 
K — All  boxed  pine  trees  except  trees  for  fuel 


208  TIMBER  BONDS 

aud  i^lantation  purposes  on  the  tract  shown 

on  the  map  as  the  Butler  89-acre  tract, 

which  is  generally  described  as: 

All  that  certain  tract  of  land  containing  89 
acres  more  or  less,  known  as  Lot  No.  9 
of  the  Lambert  Plantation,  and  bounded 
on  the  North  by  the  Savannah  and  Da- 
rien  Eoad;  on  the  East  by  the  lands  of 
John  Baker;  on  the  South  by  the  lands 
of  John  Baker,  and  on  the  "West  bv  the 
land  of  D.  L.  Buttolph, 
and  which  89-acre  tract  is  more  particularly 
described  as  follows : 

Beginning  at  a  stake  on  the  Northwest  cor- 
ner of  the  Gibson  land  on  the  East  side 
of  the  Riceboro  Eoad,  and  running 

Thence  North  31  degrees  East  8.72  chains 
to  a  dam; 
'  Thence  along  said  dam  North  S-i  degrees 
West  3.80  chains; 

Thence  North  43yo  degrees  East  9.68 
chains ; 

Thence  North  46V2  degrees  West  11.90 
chains ; 

Thence  South  35  degrees  West  10.50  chains 
to  the  Riceboro  Road; 

Thence  along  said  road  South  26  degrees 
East  18,80  chains  to  the  point  of  begin- 
ning, and  containing  89  acres ; 
Together  with  the  right  to  enter,  cut  and  re- 
move the  said  timber  at  any  time  on  or  before 
November  6,  1923,  and  witli  the  right  to  ex- 


TRUST  DEEDS  209 

tend  the  said  term  of  removal  for  an  additional 
period  of  five  (5)  years  (or  mitil  November  6, 
1928),  upon  the  payment  of  One  (1)  Dollar  and 
thirty- five  (35)  cents  per  annum  to  Shedrack 
Butler,  his  heirs  or  assigns,  being  the  same  tim- 
ber and  rights  acquired  by  E.  V.  Dunlevie  from 
Shedrack  Butler  by  deed  dated  November  6, 
1908,  and  recorded  at  pages  41  et  seq.,  in  Book 
A-J  in  office  of  the  Clerk  of  the  Superior  Court 
of  Liberty  County,  Georgia. 

L — All  timber  and  trees  of  every  sort  and  de- 
scription on  five  tracts  of  land  indicated  on 
the  map  as: 

(1)  Sampson  Carter  96  acres; 

(2)  D.  D.  James  50  acres; 

(3)  Charles  Dix  23  acres; 

(4)  Gus  Quarterman  63  acres,  and 

(5)  D.  D.  James  100  acres; 

said  five  tracts  being  respectively  described  as 

follows : 

(1)  Sampson  Carter  tract,  lying  in  the  Fif- 
teenth Civil  District  of  Liberty  County, 
and  bounded  on  the  North  by  lands  for- 
merly belonging  to  the  E.  B.  Way  Es- 
tate; on  the  East  by  the  lands  of  D.  D. 
James;  on  the  South  by  the  lands  of 
David  James,  and  others,  and  on  the 
West  by  the  lands  of  the  E.  B.  Way  Es- 
tate, 

the  timber  on  which  tract  is  hereby  conveyed 

together  with  the  right  to  enter,  cut  and  remove 


210  TIMBER  BONDS 

the  same  at  anv  time  on  or  before  March  12, 
1916,  being  the  same  timber  and  rights  acquired 
by  E.  V.  Dunlevie  from  Hilton  &  Dodge  Lumber 
Co.  by  deed  dated  February  19,  1909,  and  re- 
corded at  pages  227  et  seq.,  in  Deed  Book  A-J 
in  the  office  of  the  Clerk  of  the  Superior  Court 
of  Liberty  County,  Georgia. 

(2)  D.  D.  James  50-acre  tract: 
Bounded  on  the  North  by  the  lands  of  Au- 
gustus Quarterman  and  the  estate  of  E. 
B.  Way;  on  the  East  by  the  lands  of 
William  Lambert;  on  the  South  by  the 
lands  of  the  estate  of  W.  B.  Fleming, 
and  on  the  West  by  the  lands  of  the  es- 
tate of  E.  B.  Way, 

the  timber  on  which  tract  is  hereby  conveyed 
together  with  the  right  to  enter,  cut  and  remove 
the  same  at  any  time  on  or  before  April  4, 
1929,  being  the  same  timber  and  rights  acquired 
by  E.  V.  Dunle\ie  from  D.  D.  James  by  deed 
dated  February  13,  1909,  and  recorded  at  pages 
185  et  seq.,  in  Deed  Book  A-J  in  the  office  of  the 
Clerk  of  the  Superior  Court  of  Liberty  County, 
Georgia. 

(3)  Charles  Dix  23  acres,  being 

All  that  certain  tract  of  land  containing  23 
acres  more  or  less,  known  as  part  of  the 
Bacon  tract,  and  being  in  the  Fifteenth 
District,  and  bounded  on  the  North  by 
lands  formerly  belonging  to  Jack  Baker ; 
on  the  East  by  the  lands  of  Gus  Quar- 
terman; on  the  South  by  lands  formerly 


TRUST  DEEDS  211 

belonging  to  the  estate  of  Judge  Flem- 
ing, and  on  the  West  by  the  lands  for- 
merly belonging  to  the  estate  of  Judge 
Fleming,  and  the  estate  of  Jack  Baker, 
the  timber  on  which  tract  is  hereby  conveyed, 
together  with  tlie  right  to  cut,  enter  and  remove 
the  same  at  any  time  on  or  before  November 
7,  1923,  and  with  the  right  to  extend  this  time 
for  removal  for  an  additional  time  of  five  (5) 
years  (or  until  November  7,  1928)  upon  the 
pajTuent  of  fifteen  (15)  cents  per  annum  to 
Charles  Dix,  his  heirs  or  assigTis — being  the 
same  timber  and  rights  acquired  by  E.  V.  Dun- 
levie  from  said  Charles  Dix  by  deed  dated  No- 
vember 7,  1908,  and  recorded  at  pages  39  et 
seq.,  in  Deed  Book  iV-J  in  the  office  of  the  Clerk 
of  the  Superior  Court  of  liberty  County, 
Georgia. 

(4)  Gus  Quarterman  63  acres,  being  all 
that  certain  tract  of  land  containing  63 
acres,  more  or  less,  bounded  on  the 
North  and  East  by  the  lands  formerly 
belonging  to  the  Lambert  Estate;  on  the 
South  by  the  lands  of  the  estate  of  W. 
B.  Fleming,  and  on  the  West  by  the 
lands  of  Charles  Dix,  the  timber  on 
which  is  hereby  conveyed,  together  with 
the  right  to  enter,  cut  and  remove  the 
same  at  any  time  on  or  before  Novem- 
ber 6,  1923,  and  with  the  right  to  extend 
this  time  of  removal  for  an  additional 
period   of  five   (5)   years    (or  until  No- 


212  TIMBER  BONDS 

vember  6,  1928)  upon  the  payment  of 
seventy-five  (75)  cents  per  annum  to  Au- 
gustus Q.  Quarterman,  his  heirs  or  as- 
signs, it  being  the  same  timber  and 
rights  acquired  l)y  E.  V.  Dunlevie  from 
said  Augustus  Q.  Quarterman,  bj'-  deed 
dated  November  6,  1908,  and  recorded 
at  pages  37  et  seq.,  in  Deed  Book  A-J 
in  the  office  of  the  Clerk  of  the  Superior 
Court  of  Liberty  County,  Georgia. 

(5)  D.  D.  James  100  acres. 

Being  all  that  certain  tract  of  land  known 
as  a  part  of  W.  E.  W.  Quarterman 
Plantation,  containing  100  acres,  more 
or  less,  and  bounded  on  the  North  by 
Sunbury  Road ;  on  the  East  by  the  lands 
of  the  estate  of  Way;  on  the  South  by 
the  lands  of  the  estate  of  Mallard,  and 
on  the  West  by  the  lands  of  Isaac  Mor- 
rison, the  timber  on  which  tract  is  here- 
by conveyed,  together  with  the  right  to 
cut,  enter  and  remove  the  same  at  any 
time  on  or  before  February  13,  1929, 
being  the  same  timber  and  rights  ac- 
quired by  E.  V.  Dunlevie  from  David  D. 
James  by  deed  dated  February  13,  1909, 
and  recorded  at  pages  180  et  seq.,  in 
Deed  Book  A-J  in  the  office  of  the  Clerk 
of  the  Superior  Court  of  Liberty  County, 
Georgia. 
Said  five  (5)  tracts  of  land  the  timber  on 
which  is  in  this  Item  conveyed,  are  practically 


TRUST  DEEDS  213 

contiguous  and  are  more  particularly  described 
as  follows: 

Beginning  at  a  stake  on  a  dam  on  the  line 

of    the    Mallard    755    acres,    being    the 

Southwest  corner  of  the  J.  B.  Way  50 

acres,  and  running 
Thence  South  821/2  degrees  East  along  the 

dam  1,584  feet; 
Thence  South  120  feet  to  a  dam; 
Thence  along  the  dam  South  87  degrees 

East  1,960  feet; 
Thence  along    a    dam    North    34    degrees 

East  2,555  feet  to  the  Sunbury  Road; 
Thence  North  571/4  degrees    West    1,835 

feet; 
Thence  North  47  degrees  West  590  feet ; 
Thence  North  73  degrees  West  575  feet; 
Thence  North  40  degrees  West  about  330 

feet; 
Thence  North  54  degrees  West  184  feet; 
Thence  North  35  degrees  East  345  feet; 
Thence  Northwest  about  350  feet  to  a  ditch, 

a  line  of  the  D.  D.  James  100  acres; 
Thence  along  the  said  lines  and  the  ditch 

North  35  degrees  East  1,479  feet  to  the 

Sunbury  Road; 
Thence  along  the  Sunbury  Road  North  73 

degrees  West  1,270  feet  to  a  stake  on 

the  South'  side  of  the  Sunbury  Road ; 
Thence  South  35  degrees  West  3,430  feet 

to  the  line  of  the  Mallard  755-acre  tract ; 
Thence  with  the  lines  of  the  Mallard  755- 


214  TIMBER  BONDS 

acre  tract  South  60  degrees  East  1,210 
feet ; 
Thence  South  30  degrees  West  10  chains; 
Thence  South  78  degrees  West  2.90  chains ; 
Thence  South  26  degrees  West  32.27  chains 
to  the     place  of    beginning,    containing 
432  acres. 
This  above  boundary  includes  the  J.  B.  Way 
50  acres,  the  Eliza  James  25  acres,    and   the 
Buckhein  25  acres,  the  timer  on  which  tracts 
is  not  now  owned  by  the  Company,    but    for 
which  the  Company  is  negotiating,    and    this 
conveyance  is  intended  to  include  and  convey 
the  same  to  the  Trustees  hereunder,  when  and 
as  it  may  be  acquired,  together  with  any  and 
all  rights  acquired  therewith. 

M — (1)  All  the  trees  of  every  sort  and  descrip- 
tion lying  on  the  tract  shown  on  the  map 
as  the  Tom  Bacon  50-acre  tract,  which  is 
generally  described  as: 
All  that  certain  tract  of  land  containing 
50  acres,  more  or  less,  bounded  on  the 
North  by  the  lands  of  the  estate  of  E. 
Jones;  on  the  East  by  the  lands  of  the 
estate  of  W.  J.  James;  on  the  South  by 
the  Cherry  Hill  Road,  and  on  the  West 
by  the  lands   of   D.   L.   Buttolph,    said 
tract  of  land  being  known  as  part  of  the 
•    Moses  Way  tract,  the  timber  on  which 
. .    tract  is  hereby  conveyed,  together  with 
.   the  right  to  enter,  cut  and  remove  the 


TRUST  DEEDS  215 

same  at  any  time  on  or  before  Novem- 
ber 5,  1923,  and  with  the  right  to  extend 
the  time  for  removal  for  an  additional 
time  of  five  (5)  years  should  the  timber 
not  be  removed  on  or  before  said  date — 
being  the  same  timber  and  rights  ac- 
quired by  E.  V.  Dunlevie  from  Tom 
Bacon  by  deed  dated  November  5,  1908, 
and  recorded  at  pages  35  et  seq.  in  Deed 
Book  A-J  in  the  office  of  the  Clerk  of  the 
Superior  Court  of  Liberty  County,  Geor- 
gia. 

(2)  All  trees  of  every  sort  and  description 
except  trees  necessary  for  fuel  and  plan- 
tation purposes  on  the  tract  shown  on 
the  map  as  the  W.  J.  James  45-acre 
tract,  and  which  is  generalh^  described 
as: 

All  that  certain  tract  of  land  containing  50 
acres,  more  or  less,  and  known  as  part  of 
the  Moses  Way  tract,  and  bounded  on 
the  North  by  the  lands  of  the  estate  of 
E.  Jones ;  on  the  East  by  the  lands  of  the 
estate  of  Plenty  James;  on  the  South 
by  the  Cherry  Hill  Road,  and  on  the 
West  by  the  lands  of  Tom  Bacon,  except- 
ing therefrom  five  acres  sold  by  said  W. 
J.  James  to  Shedrach  Bacon,  the  timber 
on  which  tract  is  hereby  conveyed,  to- 
gether with  the  right  to  enter,  cut  and 
remove  the  same  at  any  time  on  or  be- 
fore November  6,  1923,  with  the  right 


216  TIMBER  BONDS 

to  extend  the  time  for  removal  for  an 
additional  term  of  five  (5)  j^ears  (or 
until  November  6,  1928)  upon  the  pay- 
ment of  One  Dollar  and  twenty  cents 
(1.20)  per  annum  to  W.  D.  James,  his 
heirs  or  assigns,  being  the  same  timber 
and  rights  acquired  by  E.  V.  Dunlevie 
from  W.  D.  James  and  others  by  deed 
dated  November  6,  1908,  and  recorded 
at  pages  86  et  seq.,  in  Deed  Book  A-J 
in  the  office  of  the  Clerk  of  the  Superior 
Court  of  Liberty  County,  Georgia. 
The  above  two  tracts  are  adjoining  and  in- 
cluded in  one  general  boundarj^  as  follows: 

Beginning  at  a  stake  on  the  Sunbury  Road, 
the  Northeast  corner  of  the  Quarter- 
man  62-acre  tract,  as  shown  on  the  map ; 

Thence  North  30  degrees  East  3,896  feet; 

Thence   South   5714   degrees    East    1,118 

feet ; 
Thence  South  30  degrees  West  3,896  feet 

to  the  North  side  of  the  Sunbury  Road; 

Thence   along  said  Sunbury  Road  North 
57^/4  degrees  West,  1,118    feet    to    the 
point  of  beginning,  containing  95  acres. 
All  of  the  property  and  rights  above  con- 
veyed being  the  same  which  were  conveyed  to 
the  Company  by  deed  of  Ernest  V.  Dunlevie  of 
Buffalo,  New  York,  by  deed  date  November  16, 
1910,  and  recorded  at  pages   323    et   seq.,   in 
Deed  Book  A-K,  in  the  office  of  the  Clerk  of 


TRUST  DEEDS  217 

the  Superior  Court  of  Liberty  County  Georgia. 
Sixth — Lauds  conveyed  in  fee: 

There  is  also  hereby  conveyed  tlie  follow- 
ing lands  lying,  being  and  situate  in  the 
Fifteenth  District  G.  M.  of  Liberty 
County,  Georgia,  to  wit : 

Beginning  at  a  point  on  the  Mcintosh 
Eoad,  iudicatecl  by  a  star  on  the  map 
herein  included,  the  same  likewise  being 
the  beginning  corner  of  the  lands  de- 
scribed in  Item  Fifth  A  hereof; 

Thence  along  said  Mcintosh  Eoad  North 
I81/1  degrees  East  17.80  chains; 

Thence  South  8334  degrees  East  36.40 
chains ; 

Thence  North  283/4  degrees  East  25.35 
chains  along  said  road; 

Thence  North  2  degrees  West  11  chains 
along  said  road; 

Thence  due  North  22.75  chains  along  said 
road; 

Thence  North  8i/4  degrees  East  3.14  chains 
along  said  road; 

Thence  North  4034  degrees  East  10.20 
chains  along  said  road ; 

Thence  North  311/2  degrees  East  14.44 
chains  along  said  road; 

Thence  North  50%  degrees  East  8.27 
chains  along  said  road ; 

Thence  North  64i/o  degrees  East  95  links 
along  said  road; 


218  TIMBER  BONDS 

Thence    North    8634    degrees    East    15.75 

chains  along  said  road  to  a  gum; 
Thence   North   691/2    degrees   East    12.15 

chains  along  said  road; 
Thence  South  79  degrees  East  30  chains; 
Thence  South  11  degrees  West  1.40  chains ; 
Thence    South    65    degrees    East    35.15 

chains ; 
.  Thence    North    11    degrees    East    16.70 

chains. 
Thence     South    64    degrees    East    78.78 

chains ; 
Thence  South  26  degrees  West  21  chains ; 
Thence  South  8  degrees  East  10.50  chains ; 
Thence  South  60  degrees  East  24  chains ; 
Thence  South  5  degrees  West  20.40  chains ; 
Thence    North    76    degrees    West    39.50 

chains ; 
Thence  South  29  degrees  West  10.55  chains 

to  a  stake  on  the  North    side    of    the 

Screven  Road; 
Thence  South  62  degrees  East  60  chains; 
Thence  South  2  degrees  West  27.75  chains 

on  a  dam  to  a  water  oak; 
Thence  South  4  degrees  East  26.60  chains 

to  a  water  oak; 
Thence  South  88  degrees  East  12.40  chains 

to  a  ditch; 
Thence    South    10    degi-ees    West    29.30 

chains; 
Thence  South  3  degrees  West  9.50  chains 


rp 


TRUST  DEEDS  219 

on  dam  to  center  of  channel  of  Axson 

Swamp ; 
Thence  along  center  of  said  xVxson  Swamp 

South  66  degrees  East  1.40  chains; 
Thence  South  88  degrees  East  1.35  chains ; 
Thence  South  76  degrees  East  1.90  chains ; 
Thence  North  80  degrees  East  8.70  chains ; 
Thence  South  67  degrees  East  2.60  chains ; 
Thence  North  76  degrees  East  4  chains; 
Thence  South  79  degrees  East  7.20  chains ; 
Thence  South  11  degrees  West  1.60  chains ; 
Thence  North  84  degrees  East  4.40  chains 

to  a  corner  in  channel  cypress  and  ash 

witnesses ; 
Thence   South   21/0    degrees    West    40.65 

chains  to  the  South  side  of  the  Riceboro 

Road; 
Thence  South  88  degrees  East  along  said 

road  25.65  chains ; 
Thence  South  7  degrees  West  47  chains  on 

dam; 
Thence    South    88    degrees    West    17.20 

chains ; 
Thence    North    86    degrees    West    14.25 

chains ; 
Thence    North    50    degrees    West    29.91 

chains  to  an  elm ; 
Thence  South  40  degrees  West  13  chains 

to  an  elm; 
Thence  North  58  degrees  West  8  chains; 
Thence    South    26    degrees    West    14.30 
.   chains;    . 


220  TIMBER  BONDS 

Thence  North  88  degrees  West  2.95  chains ; 
Thence  North  59  degrees  West  9.80  chains ; 
Thence  South  2  degrees  West  21  chains 

on  a  dam ; 
Thence  North  68  degrees  West  49.33  chains 

to  a  pine; 
Thence  South    273/4  degrees    West    56.60 

chains ; 
Thence    North    66%    degrees   West   42.60 

chains  to  an  oak  on  the  North  side  of  the 

Sandy  Rim  Road; 
Thence  along  said  road  South  49  degrees 

East  7.66  chains; 
Thence  South  23  degrees  West  71.50  chains 

on  a  dam; 
Thence  South  58  degrees  West  30  chains 

to  a  cypress ; 
Thence  North  67  degrees  West  5.70  chains 

to  a  light  wood  stump; 
Thence    South     28    degrees    West    19.80 

chains ; 
Thence    North    22    degrees    West    52.40 

chains ; 
Thence    South    33iyl,    degrees    West    24 

chains ; 
Thence    North    83    degrees    West    10.50 

chains ; 
Thence    North    53.30    degrees    West    30 

chains ; 
Thence  North  73  degrees  West  40  chains; 
Thence  North  30  degrees  East  5  chains ; 
Thence  North  73  degrees  West  17.30  chains 


TRUST  DEE3DS  221 

to  the  East  side  of  the  Jonesville  Road; 
TheDce  along  said  Jonesville  Road  North 

16  degrees  West  53.95  chains  to  the  San- 

dy  Run  Road; 
T'hence  along  said  Sandy  Run  Road  South 

871/.  degrees  East  19.60  chains; 
Thence    Nortli     12     degrees    East     11.64 

chains ; 
Thence    North    50*)4    degrees  West  13.25 

chains ; 
Thence   North    ISi/o    degrees    West    23.80 

chains ; 
Thence    North    24i/,    degrees    East    48.90 

chains ; 
Thence    Nortli    4i/o    degrees     East     38.88 

chains  to  the  road  leading  to  Allenhurst^ 
Thence  North  73  degrees  East  3.90  chains ; 
Thence    North    2Vi    degrees    East    27.70 

chains ; 
Thence    South    86     degrees     East    48.87 

chains ; 
Thence    North    7\u    degrees    East    13.70 

chains ; 
Thence  North  4  degrees  East  21.60  chains; 
Thence  North  9  degrees  East  18.90  chains ; 
Thence    North    61/0    degrees    East    19.12 

chains ; 
Thence   North   66%    degrees    West   12.50 

chains  to  the  Mcintosh  Road  and  to  the 

point     of     heginning,     and     containing 

10,259  acres,  more  or  less. 


222  TIMBER  BONDS 

There  is  excluded  from  the  above  boundary, 
however,  the  following  tracts : 

EXCLUSION  NO.  1 : 

The  Middleton  480-acre  tract  on  which  the 
timber  has  hereinabove  been  conveyed  in  Item 
Fifth  D,  which  tract  is  described  by  metes  and 
bounds  as  follows: 

Commencing  at  a  pine  on  the  Sandy  Run 

Road  and  running 
Thence    North    71/2    degrees    West    33.33 

chains ; 
Thence  North  3  degrees  East  45  chains; 
Thence   South   81.50  degrees    East    64.30 

chains  to  a  pine ; 
Thence    South    I81/2    degrees   East   12.10 

chains  to  a  light  wood  stump; 
Thence  South  8V2  degrees  East  46  chains 

to  the  edge  of  the  old  road  to  Anderson 

Plantation ; 
Thence  along  the  North  side  of  said  road 

South  60  degrees  West  34  chains  to  the 

Sandy  Run  Road ; 
Thence  North  55  degrees  West  8  chains; 
Thence  South  67  degrees  West  3.40  chains ; 
Thence  North  88  degrees  West  28.75  chains 

to  the  point  of  beginning  and  containing 

480  acres; 

EXCLUSION  NO.  2 : 

About  225  acres  made  up  of  several  small 
tracts  lying  along  the  Riceboro  Road,  which 


TRUST  DEEDS  223 

tracts  are  all  contiguous  and  included  in  one 
general  boundary,  particularly  described  as 
follows : 

Beginning  at  a  pine  tree  on  the  Northeast 

corner  of  the  Middleton  480-acre    tract 

(Exclusion  No.  1  above),    and    running 

due  North  12.78  chains  to  the  Riceboro 

Road; 
Thence  along  said  Riceboro  Road  North 

8334  degrees  West  56.66  chains; 
Thence    North    91/2    degrees    West    6.20 

chains ; 
Thence    North   SSi/o    degrees    West    6.40 

chains ; 
Thence    North    60    degrees    West    13.80 

chains ; 
Thence    North    9%    degrees    West    3.60 

chains ; 
Thence    North    54    degrees    West    12.71 

chains ; 
Thence  South  43  degrees  West  14  chains ; 
Thence  South  22  degrees  East  1.93  chains ; 
Thence  South  35  degrees  West  2.13  chains 

to  the  Riceboro  Road; 
Thence  along  said  Riceboro  Road  North 

60  degrees  West  18.30  chains; 
Thence    South    49    degrees    West    37.50 

chains ; 
Thence    South    331/2    degrees    East    16.03 

chains ; 
Thence    South    50%    degrees    East    6.37 

chains ; 


224  TIMBER  BONDS 

Thence    Nortli    4I14    degrees    East    23.50 

chains ; 
Thence   South   81.50   degrees    East  109.25 
chains  to  the  place  of  beginning. 
The  above  tract  of  land  in  this  Sixth  Item 
conveyed  contains  nine  thousand  five  hundred 
and  fifty-four  (9,554)  acres,  more  or  less,  and 
is  composed  of  the  ten  smallest  tracts  generally 
known  and  indicated  on  the  map  as  follows: 

(1)  Taylor  Walthour,  Buena  Vista  Planta- 
tion, contains  ]  ,005  acres ; 

(2)  Montgomery  2,200  acres; 

(a)  Russel  Walthour  l,242i/>  acres; 

(b)  Richland  Plantation  of  900  acres. 

(3)  Walthour  Homestead  of  1,500  acres; 

(4)  Panama  Baker  Plantation,  297  acres; 

(5)  Pleasant  Valley    Plantation    of    900 
acres ; 

(6)  H.  R.  Middleton  664  acres; 

(7)  Middleton  and  Futch  900  acres; 

(8)  The  Green  tract  of  450  acres,  known 
as  the  Hargrave  Plantation; 

(9)  Green  782  acres,  known  as    the    La- 
Grange  tract; 

(10)  The  Howe  856  acres,  known  as  the 
Anderson  tract. 

The  timber  on  the  said  9,554  acres  is  the 
same  acquired  by  E.  V.  Dunlevie  from  Hilton 
and  Dodge  Lumber  Co.  by  deed  dated  May  28, 
1908,  and  recorded  at  pages  444  et  seq.,  in 
Book  A-I  in  the  office  of  the  Clerk  of  the  Su- 
perior Court  of  Tjiberty  Comity,  Georgia,  and 


TRUST  DEEDS  226 

by  said  Dunlevie  conveyed  to  the  Company  by 
deed  dated  November  16,  1910,  and  recorded 
at  pages  323  et  seq.,  in  Deed  Book  A-K  in  the 
same  office ;  and  the  fee  of  said  tract  being  the 
same  conveyed  to  Edward  E.  Barthell,  by  deed 
of  Hilton  &  Dodge  Lumber  Company  dated 
November  16,  1910,  recorded  at  pages  320  et 
seq.,  in  Deed  Book  A-K,  and  by  said  Barthell 
to  the  Company  by  deed  dated  November  16, 

1910,  recorded  at  pages et  seq.,  in  Deed 

Book in  said  Clerk's  office. 

Also,  all  boilers,  engines,  donkey  engines, 
cars,  locomotives,  log  loaders,  skidders,  and  all 
machinery  and  equipment  now  or  hereafter 
used  in  connection  with  the  logging  operations 
of  the  property  above  described,  together 
with  all  betterments,  additions  and  improve- 
ments of  everj^  nature  and  description  hereaf- 
ter placed  upon  said  premises,  or  made  to  or 
upon  said  logging  railroad  and  equipment  or 
made  to  or  upon  said  logging  plant  and  equip- 
ment, and  used  or  intended  to  be  used  in  con- 
nection therewith. 

To  HAVE  AND  TO  HOLD  all  and  singular  the 
above  described  property  and  rights,  together 
with  all  the  rights,  title  and  interest  thereunto 
belonging,  and  all  the  privileges  and  appur- 
tenances thereunto  appertaining,  together  with 
all  other  property  which  by  the  terms  hereof 
may  become  subject  to  this  instrument,  unto 
the  said  Union  Trust  Company  and  the  said 
John  K.  Lyon,   Trustees,  their  successors  in 


226  TIMBER  BONDS 

trust,  and  their  assigns  in  fee  simple  forever. 
And  tlie  party  of  the  first  part  covenants  that 
it  is  seized  and  possessed  of  the  property  above 
described  and  conveyed  in  fee  simple ;  that  the 
same  is  unencumbered  and  that  it  has  a  good 
right  to  convey  it;  and  it  warrants  to  forever 
defend  the  title  thereto  unto  the  said  Trustees, 
their  successors  and  assigns,  against  the  law- 
ful claims  of  all  persons  whomsoever — 

In  trust  nevertheless  for  the  purpose  of  se- 
curing the  prompt  and  punctual  payment  of  all 
and  every  of  the  bonds  above  described  and 
of  the  interest  coupons  thereto  attached,  with- 
out preference  or  priority  of  one  bond  over  an- 
other, or  of  bonds  over  coupons,  or  of  coupons 
over  bonds,  with  the  same  effect  as  if  all  of 
said  bonds  matured  upon  the  same  date,  and 
regardless  of  the  date  or  time  of  the  issue  or 
negotiation  thereof;  and  subject  to  the  follow- 
ing provisions,  restrictions  and  conditions,  to 
wit: 

ARTICLE  I. 

All  of  the  bonds  issued  and  certified  here- 
under shall  stand  upon  equality  without  regard 
to  date  of  issue,  certification,  negotiation  or 
delivery.  Only  such  bonds  as  shall  bear  there- 
on endorsed  the  certificate  of  the  Corporation 
Trustee  or  its  successor  hereunder,  by  it  duly 
executed,  shall  be  valid  or  obligatory  for  any 
purpose  or  shall  be  secured  by  this  instru- 
ment or  entitled  to  any  lien  or  benefit  here- 


TRUST  DEEDS  227 

under,  and  every  such  certificate  of  said  Cor- 
poration Trustee  upon  any  bond  executed  in 
behalf  of  the  Company  shall  be  the  only  and 
conclusive  evidence  that  the  bond  so  certified 
has  been  duly  issued  hereunder  and  is  entitled 
to  the  benefit  of  the  trust  hereby  created  and  no 
holder  of  any  bond  issued  hereunder  which 
shall  be  so  certified  by  said  Corporation  Trus- 
tee shall  be  under  the  duty  to  ascertain  whether 
the  same  shall  have  been  duly  issued,  certified 
or  delivered,  according  to  the  provisions  hereof. 

The  entire  issue  of  said  bonds  shall  be  exe- 
cuted by  the  Company  and  at  once  certified  and 
delivered  by  said  Corporation  Trustee  to  the 
President  of  the  Company  or  to  such  person 
or  persons  as  the  Board  of  Directors  of  the 
Company  by  its  resolution  may  designate. 

Upon  certifying  or  delivering  any  bond  un- 
der this  mortgage  or  deed  of  trust  all  coupons 
thereon  then  matured  shall  be  detached  and 
cancelled  by  the  Corporation  Trustee  and  de- 
livered to  the  Company. 

In  case  the  officers  who  shall  have  signed 
and  sealed  any  of  the  bonds  aforesaid  shall 
cease  to  be  such  officers  of  the  Company  before 
the  bonds  so  signed  and  sealed  shall  have  been 
actually  certified  and  delivered  by  the  Corpora- 
tion Trustee,  or  issued,  such  bonds  may  never- 
theless be  issued,  certified  and  delivered  as 
though  the  persons  who  had  signed  and  sealed 
such  bonds  had  not  ceased  to  be  officers  of  said 
Company. 


228  TIMBER  BONDS 

Interest  coupons  shall  be  authenticated  by 
the  engraved  fac-simile  signature  of  the  pres- 
ent Treasurer  of  the  Company,  and  the  Com- 
pany may  adopt  and  use  said  coupons,  notwith- 
standing the  fact  that  the  present  Treasurer 
may  have  ceased  to  hold  such  office  at  the  time 
when  said  bonds,  or  some  portion  thereof,  shall 
be  actually  certified  and  delivered. 

The  Trustees  shall  not  be  bound  to  see  to 
the  application,  use  or  disposition  of  any  of 
the  bonds  secured  hereby,  or  of  the  proceeds 
thereof. 

AETICLE  II. 

Any  bond  secured  hereby  shall  pass  by  de- 
livery unless  registered,  but  it  may  be  regis- 
tered as  to  principal  in  the  holder's  name  on 
the  books  of  tlie  Union  Trust  Company,  Eeg- 
istrar,  at  its  office  in  the  City  of  Chicago,  Illi- 
nois, such  registry  being  noted  on  the  bond  by 
said  Registrar,  after  which  only  such  registered 
holder,  or  the  legal  representative  of  such 
holder,  shall  be  entitled  to  receive  the  principal 
thereof;  and  no  transfer  shall  be  valid  unless 
made  on  said  Registrar's  books  by  the  regis- 
tered holder  of  the  bond  in  person  or  by  the 
legal  representative  of  such  holder  and  simi- 
larly noted  on  the  bond;  but  the  bond  may  be 
discharged  from  registry  by  registration  to 
bearer,  after  which  it  shall  be  transferable  by 
delivery.  It  may  be  registered  again,  however, 
in  the  manner  above  provided. 


TRUST  DEEDS  229 

The  registry  of  any  bond  shall  not  impair 
the  negotiability  of  the  coupons,  but  the  same 
shall  continue  to  be  transferable  by  delivery 
notwithstanding  such  registration. 


ARTICLE  III. 

In  ease  any  bond  issued  under  this  instru- 
ment or  the  coupons  thereto  appertaining,  shall 
become  mutilated,  lost  or  destroyed,  the  Com- 
pany in  its  discretion  may  issue  and  thereupon 
the  Corporation  Trustee  shall  certify  and  de- 
liver a  new  bond  of  like  date,  tenor  and  amount, 
bearing  the  same  number  as  the  one  mutilated, 
lost  or  destroyed,  in  exchange  for  and  in  place 
of  and  upon  the  cancellation  of  the  mutilated 
bond  or  coupons,  or  in  lieu  of  and  substitution 
for  the  same,  if  lost  or  destroyed.  In  such 
case  the  applicant  for  such  new  or  substituted 
bond  shall  bear  the  expense  of  furnishing  the 
same. 

The  Company  shall  not  be  required  to  issue 
nor  the  Corporation  Trustee  to  certify  a  new 
bond  in  lieu  of  any  bond  alleged  to  have  been 
lost  or  destroyed  unless  the  applicant  for  such 
new  bond  shall  first  furnish  evidence  of  such 
loss  or  destruction,  and  indemnity  against  its 
subsequent  presentation  as  an  obligation  of 
the  Company,  which  evidence  and  indemnity 
shall  be  satisfactory  to  both  the  Company  and 
the  Corporation  Trustee,  in  their  discretion. 


230  TIMBER  BONDS 

AETICLE  IV. 

Southern  Timber  Company  agrees  and  cove- 
nants that  it  will  duly  and  punctually  pay,  or 
cause  to  be  paid,  to  every  holder  of  any  bond 
issued  hereunder,  and  secured  hereby,  the 
principal  and  interest  accrued  thereon,  all  in 
gold  coin  of  the  United  States  of  America  of 
the  standard  of  weight  and  fineness  existing 
on  the  nineteenth  day  of  November,  1910,  not- 
withstanding any  law  which  may  now  or  here- 
after make  anything  else  a  legal  tender  in  pay- 
ment of  debts,  at  the  dates  and  place,  and  in  the 
manner  mentioned  in  said  bonds  or  in  the  cou- 
pons thereto  appertaining,  according  to  the 
true  intent  and  meaning  thereof,  and  without 
deduction  from  either  the  principal  or  interest 
for  any  tax,  or  taxes,  or  assessments,  or  other 
governmental  charges  which  may  be  imposed 
thereon,  or  which  the  Company  may  be  requir- 
ed or  permitted  to  pay  or  to  deduct  or  retain 
therefrom  under  or  by  reason  of  any  present 
or  future  law  of  the  United  States,  or  of  any 
State,  county  or  municipality  thereunder. 

However,  the  interest  on  said  bonds  shall  be 
payable  only  upon  the  presentation  and  sur- 
render of  the  respective  coupons  annexed  to 
said  bonds,  as  such  coupons  respectively  ma- 
ture and  when  and  as  paid  all  the  coupons  shall 
forthwith  be  cancelled  and  delivered  to  the 
Company. 

And  the  Company  agrees  promptly,  and  in 


TRUST  DEEDS  231 

time  to  prevent  any  sale  or  forfeiture  of  the 
mortgaged  premises  or  any  part  of  the  same  on 
account  thereof,  to  pay,  or  cause  to  be  paid, 
all  taxes,  assessments  and  governmental 
charges  which  shall  from  time  to  time  be  le- 
gally imposed,  assessed  or  levied,  upon  or 
against  the  property  hereby  conveyed,  or  upon 
any  part  thereof,  or  upon  the  profits  or  in- 
come thereof,  or  upon  or  against  the  Company, 
and  to  pay  or  cause  to  be  paid  any  tax,  judg- 
ment or  other  encumbrance,  the  lien  whereof 
might  be  held  superior  to  the  lien  of  these  pre- 
sents, upon  the  property  hereby  conveyed  or 
upon  any  part  thereof,  so  that  the  priority  of 
these  presents  shall  at  all  times  be  fully  main- 
tained and  preserved;  provided,  however,  that 
the  Company  may,  with  the  consent  of  the  Cor- 
poration Trustee  thereto  first  had  and  obtained 
in  writing,  resist  in  any  legal  way  the  payment 
of  any  tax,  assessment  or  charge  upon  said 
property  hereby  conveyed,  or  any  part  thereof, 
which  the  Company  may  deem  unjust,  illegal 
or  unauthorized.  And  the  Company  agrees  to 
do  on  demand  of  the  said  Trustee,  or  its  suc- 
cessors, all  acts  necessary  or  proper  to  keep 
valid  the  lien  hereby  created  or  intended  to  be 
created;  and  at  any  future  time  and  as  often 
as  it  may  be  necessary  to  execute  or  cause  to  be 
executed  on  demand  of  said  Trustee,  or  its  suc- 
cessor or  successors,  all  such  other  and  addi- 
tional conveyances,  deeds,  mortgages,  or  other 
instruments  in  writing,  in  due  form  and  effect, 


232  TIMBER  BONDS 

as  may  be  proper  to  the  better  carrying  out  of 
the  true  intent  and  meaning  of  these  presents. 

And  the  Company  further  covenants  and 
agrees  that  it  will  not  cut  nor  permit  to  be  cut 
any  timber  from  the  premises  hereunder  mort- 
gaged, nor  any  timber  hereunder  mortgaged, 
nor  extract  anything  from  or  deaden  the  said 
timber,  or  any  portion  thereof,  nor  permit  the 
same  to  be  done,  nor  permit  any  waste  or  other 
change  in  the  property  hereby  mortgaged,  or 
any  portion  thereof,  except  as  is  herein  other- 
wise expressly  provided,  but  that  it  will  dili- 
gently preserve  and  protect  the  same. 

In  case  the  Company  shall  fail  to  promptly 
pay  or  cause  to  be  paid  any  tax,  assessment  or 
other  charge  as  provided  for  therein,  either  of 
the  Trustees  may  pay  the  same  (but  shall  not 
be  under  any  obligation  whatsoever  so  to  do), 
in  which  event  such  Trustee  shall  be  subrogated, 
either  with  or  without  an  act,  writing  or  other 
instrument  to  that  effect,  to  the  rights  and  de- 
mands of  the  State,  county,  city,  town  or  other 
municipality,  as  the  case  may  be ;  and  in  addi- 
tion thereto  the  amount  thus  expended,  togeth- 
er with  interest  thereon  at  the  rate  of  six  per 
centum  per  annum,  shall  be  a  charge  on  the 
property  hereby  conveyed  prior  to  the  lien  of 
the  bonds  hereby  secured. 

The  Company  covenants  that  its  logging  rail- 
road, equipment  and  appurtenances,  and  its 
logging  plant,  equipment  and  appurtenances 
will  be  kept  in  repair  and  maintained  in  good 


TRUST  DEEDS  233 

working  order  and  condition,  and  if  worn  out 
or  injured  will  be  replaced  by  other  property 
suitable  to  the  business  for  which  it  is  now 
used,  and  of  at  least  equal  value,  and  that  such 
logging  railroad,  equipment  and  appurtenances 
and  such  logging  plant,  equipment  and  ap- 
purtenances shall  not  be  removed  from  the 
mortgaged  premises  without  the  consent  of  the 
Trustees  hereunder. 

The  Company  covenants  that  it  will  keep 
proper  books  of  record  and  account  showing 
full,  true  and  perfect  entries  of  all  dealings 
or  transactions  of  or  in  relation  to  the  plants, 
properties,  business  and  affairs  of  the  Compa- 
ny, and  which  shall  at  all  times  be  open  to  the 
inspection  of  the  Trustees  or  either  of  them, 
and  of  Lyon,  Gary  «&  Company,  an  Illinois 
corporation,  or  of  their  respective  successors 
hereunder;  and  that  whenever  requested  either 
by  the  Trustees  or  by  Lyon,  Gary  &  Company, 
or  their  respective  successors,  the  Company 
shall  and  will  furnish  complete  statements 
showing  its  financial  condition,  together  with 
such  other  information  bearing  on  the  security 
of  the  bonds  as  may  be  requested. 

So  long  as  there  shall  be  no  default  in  any 
of  the  covenants  in  this  instrument  contained, 
the  Company  shall  continue  in  the  possession 
of  all  the  property  embraced  herein,  and  hereby 
conveved  to  the  Trustees. 


234  TIMBER  BONDS 

AETICLE  V. 

In  order  to  prevent  any  accumulation  of 
bonds  or  coupons  after  their  maturity,  the 
Company  covenants  and  agrees  that  it  will  not 
directly  or  indirectly  extend  or  assent  to  the 
extension  of  the  time  for  payment  of  any  of 
the  bonds  or  of  any  coupons  of  any  of  the 
bonds  secured  hereby,  by  purchase  or  funding 
of  such  bonds  or  coupons  or  by  any  other  ar- 
rangement unless  and  except  such  extension 
shall  be  subject  to  the  terms  of  this  article.  In 
case  the  time  for  payment  of  any  such  bond 
or  coupon  shall  be  so  extended,  whether  or  not 
such  extension  be  with  or  by  the  consent  of  the 
Company,  such  bond  or  coupon  shall  not  be 
entitled,  in  case  of  any  default  hereunder,  to 
the  benefit  or  security  of  this  mortgage,  ex- 
cept subject  to  the  prior  payment  in  full  of  the 
principal  of  all  bonds  issued  hereunder  then 
outstanding,  and  of  all  matured  coupons  and 
accrued  interest  thereon,  and  of  all  other  ac- 
crued interest  on  such  bonds  the  payment  of 
which  has  not  been  so  extended. 

ARTICLE  VI. 

The  number  first  having  been  selected  by 
lot  by  the  Corporation  Trustee,  any  outstand- 
ing bond  issued  hereunder  may  be  redeemed 
and  paid  by  the  Company  at  the  place  of  pay- 
ment of  said  bonds  on  any  interest  payment 
date,  upon  pajonent  of  the  principal  of  said 


TRUST  DEEDS  235 

bond  and  interest  due  thereon  at  the  date  of 
such  redemption,  together  with  a  premium  of 
three  (3)  per  centum  on  the  principal  thereof. 
Such  selections  shall  in  every  case  be  made 
from  the  bonds  first  maturing,  no  bond  being 
subject  to  selection  for  redemption  until  all 
bonds  of  prior  maturities  have  either  been  paid 
or  selected  for  redemption.  In  case  of  an  elec- 
tion to  redeem  any  of  the  bonds  issued  here- 
under before  maturity  and  a  selection  pursuant 
to  such  election  either  the  Company  or  the 
Corporation  Trustee  shall  publish  a  notice  of 
such  election  to  redeem  and  the  selection  there- 
under once  a  week  for  four  successive  weeks 
(the  first  of  such  publications  to  be  not  less 
than  ninety  days  previous  to  the  date  of  re- 
demption) in  some  newspaper  of  general  cir- 
culation published  in  the  City  of  Chicago, 
State  of  Illinois,  which  notice  shall  state  the 
numbers  of  the  bonds  selected  as  above  to  be 
redeemed,  and  the  date  when  the  bonds  so  se- 
lected shall  be  due  and  payable  under  such  re- 
demption. All  bonds  so  desigiiated  for  re- 
demption shall  become  due  and  payable  on  the 
date  given  in  such  published  notice,  and  shall 
from  such  date  cease  to  draw  interest,  pro- 
vided that  at  or  prior  to  such  date  there  shall 
have  been  deposited  with  the  Corporation 
Trustee  the  proper  amount  of  money  for  the 
redemption  of  said  bonds  so  designated  for  re- 
demption. Upon  the  deposit  with  the  Corpora- 
tion Trustee  of  the  proper  amount  of  money 


236  TIMBER  BONDS 

for  the  redemption  of  any  bond  or  bonds  so 
designated  the  Company  and  the  Trustees  may 
be  privileged  to  consider  such  bond  or  bonds 
as  paid  and  cancelled,  and  the  Company  shall 
be  under  no  further  obligation  to  the  holder  or 
holders  of  such  bond  or  bonds;  nor  shall  the 
Trustees  be  further  liable  or  under  obligations 
to  such  holder  or  holders  except  for  the  mon- 
eys deposited  in  redemption  of  such  bonds,  to 
be  paid  without  interest  upon  their  surrender. 

ARTICLE  VII. 

Subject  to  the  right  of  suspension  or  revo- 
cation as  provided  in  Article  IX  hereof  and  so 
long  as  the  Company  shall  not  be  in  default  in 
the  payment  of  any  of  the  bonds  or  interest 
coupons  secured  hereby,  or  in  the  payment  of 
taxes  or  other  governmental  assessments  or 
charges  as  provided  in  this  mortgage,  or  in 
the  performance  of  any  of  the  other  covenants 
herein  contained  on  its  part  to  be  performed, 
the  Trustees  shall  and  are  hereby  authorized 
to  release  unto  the  Company  and  to  permit  the 
Company  to  cut  and  remove  free  from  the  lien 
of  this  mortgage,  or  deed  of  trust,  any  of  the 
timber  shown  on  the  ^'Estimated  Stumpage 
List"  hereinafter  referred  to,  and  conveyed 
hereby,  or  the  timber  on  any  or  all  of  the  lands 
shown  on  said  ''Estimated  Stumpage  List" 
and  conveyed  hereby,  which  the  Company  may 
select,  when  the  Company  shall  have  first  paid 
to  the  Corporation  Trustee  Five   (5)   Dollars 


TRUST  DEEDS  237 

per  thousand  feet  on  the  estimated  stumpage 
for  the  timber  on  each  description  or  group 
of  descriptions  which  the  Company  then  desires 
the  right  to  cut,  as  the  estimated  stumpage 
thereon  is  shown  on  a  list  called  "Estimated 
Stumpage  List,"  signed  in  triplicate  by  the 
Company,  by  the  Corporation  Trustee  and  by 
said  Lyon,  Gary  &  Company;  and  one  original 
of  which  list  is  deposited  with  each  of  the  sig- 
natories thereto.  Consideration  for  the  privi- 
lege of  obtaining  such  releases  may  be  given 
by  the  Company  in  any  of  the  following  three 
ways: 

(a)  By  payment  in  cash. 

(b)  By  delivery  to  the  Trustees  of  any 
of  the  bonds  hereby  secured  and  then  out- 
standing, which  it  may  have  acquired;  in 
which  case,  for  the  purpose  of  obtaining 
releases  the  amoimt  of  the  principal  of 
such  bonds  so  delivered  shall  be  treated 
the  same  as  if  a  like  amount  had  been  paid 
to  the  Trustees  in  cash. 

(c)  By  payment  of  any  of  the  bonds  se- 
cured hereby — treating  only  the  amount  of 
principal  paid  as  a  consideration  for  re- 
leases. 

In  the  event  that  the  Company  shall  acquire 
and  deliver  bonds  to  the  Trustees,  as  provided 
in  paragraph  (b)  above,  the  Trustees  shall 
cancel  the  said  bonds  so  delivered  and  forming 
the  consideration  or  part  of  the  consideration 
for  such  releases  and  also  the  coupons  attached 
thereto. 


238  TIMBER  BONDS 

The  Trustees  shall  keep  a  list  of  the  numbers 
of  all  bonds  so  used  for  the  purpose  of  secur- 
ing releases  of  portions  of  the  timber  and  shall 
indicate  on  each  such  bond  that  it  has  been  so- 
used, together  with  the  date  of  such  use. 

All  money  received  by  the  Corporation  Trus- 
tee under  this  Article  shall  be  used  for  the  re- 
tirement of  bonds  secured  as  provided  in  Arti- 
cle VI  hereof. 

The  Company  reserves  the  right  to  cut  and 
remove  free  from  the  lien  hereof,  without 
paying  therefor  as  above  provided,  the  timber 
from  group  No. on  said  Estimated  Stump- 
age  List,  the  timber  so  cut  and  removed  to 
aggregate  not  more  than  two  million  feet. 

The  Company  may  enter  upon  any  land  from 
which  the  timber  has  been  so  released  and  may 
conduct  logging  operations  thereon  as  it  may 
desire ;  and  the  Company  may  also,  at  its  pleas- 
ure, remove  any  logging  railroad  or  other 
property  which  it  may  place  on  such  land. 

ARTICLE  VIII. 

In  case  before  the  payment  in  full  of  all 
the  bonds  hereby  secured  with  interest  thereon, 
any  timber  hereby  mortgaged  or  the  timber  on 
any  portion  of  the  premises  hereby  mortgaged 
(except  as  may  have  been  theretofore  released 
under  the  provisions  of  this  instrument)  shall 
be  injured  or  damaged  by  the  action  of  fire, 
or  by  wind  or  the  elements  to  an  extent  suf- 


TRUST  DEEDS  239 

ficient  iu  tlie  opinion  of  the  Trustees  or  of 
Lyon,  Gary  &  Company,  to  appreciably  affect 
the  value  of  the  same  as  security  for  the  pay- 
ment of  the  bonds  and  coupons  then  outstand- 
ing, the  Company  shall  within  ninety  days  after 
the  extent  of  such  loss  shall  be  determined, 
pay  to  the  Corporation  Trustee  for  the  benefit 
of  the  bondholders  the  sum  of  Five  (5)  Dol- 
lars per  thousand  feet  stumpage  on  the  timber 
so  injured  or  damaged,  the  land  description  on 
which  the  timber  has  been  injured  or  damaged 
being  ascertained  by  investigation  under  di- 
rection of  the  Trustees,  and  the  amount  of  tim- 
ber thereon,  on  which  the  payments  of  Five  (5) 
Dollars  per  thousand^  feet  shall  be  made  as 
above  expressed,  being  determined  by  the  esti- 
mates made  by  a  cruiser  to  be  selected  by  the 
Trustees  with  the  written  approval  of  said 
Lyon,  Gary  &  Company,  the  expense  of  ascer- 
taining such  land  description  and  the  amount  of 
timber  so  damaged,  to  be  borne  by  the  Compa- 
ny and  to  be  a  charge  against  the  property 
herein   described,  and   secured  by  this   mort- 


gage. 


AETICLE  IX. 


While  the  Company  shall  not  be  in  default 
in  the  performance  of  any  of  the  covenants  in 
this  instrument  contained,  it  may  from  time  to 
time,  subject  to  the  conditions  hereinafter  stat- 
ed, sell  free  from  the  lien  of  this  instrument 
any  of  the  property  hereunder  mortgaged,  upon 


240  TIMBER  BONDS 

the  payment  in  cash  of  snch  sum  or  sums  of 
money  as  the  Company,  the  Trustees  and  Lyon, 
Gary  &  Company  may  agree  upon;  provided 
that  if  timber  is  sold  it  shall  not  be  at  a  less 
price  than  five  (5)  dollars  per  thousand  feet 
stumpage,  and  if  land  shall  be  sold  it  shall  not 
be  sold  at  a  less  price  than  five  (5)  dollars 
per  thousand  feet  for  the  timber  that  may  be 
thereon. 

Either  the  Trustees  or  Lyon,  Gary  &  Com- 
pany may  in  their  discretion  cause  such  in- 
vestigation to  be  made  either  of  the  amount 
of  timber  on  the  property  proposed  to  be  sold 
or  of  the  desirability  of  permitting  or  approv- 
ing of  any  proposed  sale  or  sales  of  the  proper 
ty  or  any  part  thereof  as  they  may  see  fit,  the 
expense  of  which  investigation  shall  be  paid 
by  the  Company.  The  Trustees  shall  execute 
such  instrument  as  may  be  necessary  to  release 
from  the  lien  of  this  mortgage  any  property 
sold  according  to  the  provisions  of  this  Article. 

And  always  further  provided,  however,  that 
the  right  of  the  Company  to  sell  the  land  or 
any  portion  of  the  same,  or  the  timber  or  any 
portion  of  the  same  as  is  in  this  Article  pro- 
vided, may  be  suspended  or  revoked  by  the 
Trustees  with  the  concurrence  of  Lyon,  Gary 
&  Company,  in  case  of  litigation  arising  over 
or  affecting  or  involving  questions  affecting  or 
which  may  affect  the  title  to  as  much  as  500 
acres  of  the  land  embraced  herein,  or  the  tim- 
ber on  as  much  as  500  acres;  said  suspension 


TRUST  DEEDS  241 

or  revocation  being  optional  with  the  Trustees 
and  Lyon,  Gary  &  Company,  and  if  the  right 
is  exercised,  the  same  shall  remain  in  effect 
until  some  satisfactory  settlement  of  such  liti- 
gation, or  until  other  arrangement  is  made 
with  reference  thereto,  which  is  satisfactory  to 
them  in  their  discretion. 

The  proceeds  of  the  sale  of  any  portion  of 
the  property  covered  hereby  (that  is,  the  gross 
amount  of  sale  less  reasonable  commissions 
anr1  expense  connected  with  such  sale)  shall  be 
paid  and  turned  over  to  the  Corporation  Trus- 
tee, and  shall  be  treated  by  the  Trustees  in  like 
manner  and  used  by  them  for  the  same  purpose 
as  are  the  payments  provided  for  in  Article 
VII  hereof. 

Neither  the  Trustees  nor  Lvon,  Garv  &  Com- 
panj',  shall  be  under  any  liability  for  anything 
done  (or  omitted  to  de  done)  by  them  respect- 
ively in  good  faith  hereunder. 

ARTICLE  X. 

All  sums  of  money  paid  to  the  Trustees  by 
the  Company  for  the  release  of  any  portion  of 
the  timber  hereby  mortgaged,  in  accordance 
with  any  Article  hereof,  and  all  other  sums 
which  may  come  into  the  hands  of  the  Trus- 
tees for  the  benefit  of  the  holders  of  the  bonds 
issued  hereunder,  shall  be  applied  by  the  Trus- 
tees from  time  to  time  to  the  purchase  of  out- 
standing bonds  issued  hereunder  at  such  prices 


242  TIMBER  BONDS 

as  may  be  agreed  upon  by  the  Company  and 
the  Trustees.  If  none  of  the  bonds  secured 
hereby  can  be  so  purchased,  the  Trustees  in 
the  manner  pro\dded  in  Article  VI  hereof  shall 
by  lot  select  bonds  to  be  redeemed  to  an  amount 
sufficient  to  approximately  exhaust  the  funds 
so  held  by  them;  after  which  the  bonds  so  se- 
lected shall  in  all  things  be  subject  to  the  pro- 
visions of  Article  VI  hereof  and  redeemable 
in  the  manner  therein  provided ;  such  redemp- 
tion to  be  made  on  the  first  interest  payment 
date  occurring  ninety  days  or  more  after  the 
receipt  of  such  funds  by  the  Trustees. 

No  bond  which  may  be  paid,  bought  or  re- 
deemed under  this  or  any  other  Article  hereof 
shall  be  reissued,  but  the  same  shall  be  can- 
celled by  the  Trustees  and  delivered  to  the 
Company  for  preservation. 

ARTICLE  XL 

All  moneys  which  may  be  received  as  com- 
pensation for  any  property  or  right  of  the 
Company  which  may  be  taken  by  the  exercise 
of  the  power  of  eminent  domain  or  expropria- 
tion shall  be  paid  to  the  Corporation  Trustee 
and  used  for  the  retirement  of  bonds  secured 
herein  in  accordance  with  Article  VI  or  Arti- 
cle X  hereof,  excepting  that  if  such  condemna- 
tion or  expropriation  proceedings  shall  be  de- 
fended by  the  Company  its  reasonable  ex- 
penses and  attorney's  fees  in  making  such  de- 


TRUST  DEEDS  243 

fense  shall  be  deducted  from  any  award  and 
only  the  surplus  paid  over  to  the  Corporation 
Trustee  as  herein  provided. 

But  the  Company  shall  not  be  entitled  to 
have  the  release  of  any  property  covered  here- 
by on  account  of  bonds  purchased  with  money 
coming  through  condemnation  or  expropria- 
tion proceedings. 

ARTICLE  XII. 

If  the  Company  or  its  successors  or  assigns 
shall  well  and  truly  pay  or  cause  to  be  paid 
to  the  holders  thereof  the  principal  of  all  bonds 
secured  hereby,  or  intended  so  to  be,  and  the  in- 
terest moneys  to  become  due  thereon  respect- 
ively, at  the  time  and  in  the  manner  specified 
in  the  said  bonds  and  coupons,  without  deduc- 
tion for  United  States,  State,  County,  Munici- 
pal or  other  tax  or  taxes,  or  assessments,  or 
other  governmental  charges  which  the  Compa- 
ny may  be  required  or  permitted  to  pay  or 
retain  therefrom  by  any  present  or  future  law, 
according  to  the  true  tenor  and  effect  thereof, 
or  if  at  any  time  the  Company  shall  acquire 
and  cancel  all  of  the  bonds  and  interests  cou- 
pons secured  hereby,  and  pay  off  and  discharge 
all  obligations  incurred  hereunder  including 
the  payment  of  the  reasonable  charges  and  ex. 
penses  of  the  Trustees,  then  these  presents 
and  the  trusts  hereby  created,  and  all  the  es- 
tate, right  title  and  interest  hereby  vested  in 
the  said  Trustees,  their  successors  and  assigns, 


244  TIMBER  BONDS 

in  the  property  hereby  conveyed  shall  cease 
and  determine,  as  fully  as  if  this  mortgage  had 
never  been  executed ;  and  in  that  case,  although 
it  may  not  be  necessary,  yet  the  said  Trustees 
or  their  successors  in  the  trust,  upon  demand 
of  the  Company  and  the  cancellation  of  the 
bonds  and  coupons  hereby  secured,  shall  and 
will  execute  and  deliver  to  the  Company  all 
such  instruments  as  may  be  necessary  or  rea- 
sonably requested  to  discharge  and  cancel  this 
mortgage  of  record. 

ARTICLE  XIII. 

The  Trustees  shall  have  the  right  at  any 
time  in  their  discretion,  but  not  oftener  than 
once  in  six  months,  except  in  case  the  timber 
has  been  damaged  by  fire  or  the  other  ele- 
ments, then  in  which  case,  as  often  as  in  the 
opinion  of  the  said  Trustees  and  of  Lyon,  Gary 
&  Company,  it  may  be  necessary,  to  cause  an 
inspection  of  the  lands  and  timber  herein  con- 
veyed to  see  whether  the  property  mortgaged 
hereunder  has  suffered  any  damage,  or  been 
trespassed  upon,  or  whether  there  has  been  any 
unauthorized  use  of  the  timber  or  of  the  prem- 
ises hereby  conveyed  or  of  the  timber  thereon ; 
and  the  expense  of  any  such  investigation  shall 
be  borne  and  paid  by  the  Company,  but  the 
Trustees  shall  not  be  required  to  have  such  an 
examination  made  unless  upon  the  written  re- 
quest of  the  holder  or  holders  of  some  one  or 
more  of  the  bonds  secured  hereby  and  then 


TRUST   DEEDS  245 

outstanding,  together  with  the  written  concur- 
rence of  Lyon,  Gary  &  Company  thereto,  and 
unless  such  bondholder  or  bondholders  first  ad- 
vance or  pay  to  the  Trustees  the  estimated  cost 
of  such  inspection. 

ARTICLE  XIV. 

If  default  shall  be  made  in  the  payment  of 
the  principal  of  any  of  said  bonds  or  in  the  pay- 
ment of  any  interest  money  mentioned  in  said 
bonds  or  coupons,  or  any  or  either  of  them, 
when  the  same  becomes  due,  or  if  the  Company 
shall  cut  timber  situate  upon  the  mortgaged 
premises  or  any  part  thereof  or  cut  any  of  the 
timber  mortgaged  hereunder,  or  suifer  any  of 
the  same  to  be  cut,  otherwise  than  as  herein 
provided,  or  permit  any  other  waste  of  the 
mortgaged  property,  or  shall  fail  to  perform 
any  other  of  the  covenants  in  this  mortgage  or 
deed  of  trust  contained,  on  its  part  to  be  per- 
formed, or  to  cause  to  be  performed,  and  if 
such  default  shall  continue  for  a  period  of  sixty 
days,  the  Trustees  may,  and  if  thereunto  re- 
quested in  writing  by  the  holders  of  ten  (10) 
per  centum  in  interest  of  the  said  bonds  then 
outstanding,  shall  declare  the  principal  of  all 
the  bonds  hereby  secured  then  outstanding  to 
be,  and  the  same  shall  thereupon  become,  im- 
mediately due  and  payable,  anything  contained 
in  said  bonds  or  herein  to  the  contrary  not- 
withstanding. 


246  TIMBER  BONDS 

ARTICLE  XV. 

If  default  shall  he  made  in  the  payment  of 
any  bond  or  coupons  when  the  same  become 
due  (whether  such  default  shall  have  continued 
for  the  period  of  sixty  days  or  not),  or  if  de- 
fault be  made  in  the  payment  of  taxes,  as  is 
herein  provided,  and  such  default  shall  con- 
tinue for  the  period  of  sixty  days,  the  Trus- 
tees may,  and  upon  the  request  in  writing  of 
the  holders  of  ten  (10)  per  centum  in  interest 
of  the  bonds  and  coupons  then  outstanding,  and 
upon  being  indemnified  to  their  satisfaction  for 
any  expenses  and  liabilities  which  they  may 
incur,  shall,  as  the  agents  and  attorneys  in  fact 
of  the  Company  herein,  enter  into  and  take 
full  possession  of  the  lands  and  all  other  prop- 
erty hereby  mortgaged  (except  such  as  may 
have  been  theretofore  released  under  the  pro- 
visions of  this  instrument)  and  hold,  use,  man- 
age, maintain  and  operate  the  same ;  collect  and 
receive  all  moneys  and  revenues  arising  from 
such  management  and  operation,  and  apply  the 
same,  first  to  the  expenses  of  such  operation, 
including  reasonable  compensation  for  their 
own  services  and  for  the  services  of  their 
counsel,  attorneys,  agents  and  servants;  sec- 
ond, to  the  maintenance,  management  and  op- 
eration of  the  property,  including  the  pajTuent 
of  taxes,  assessments  and  other  governmental 
charges,  and,  third,  to  the  payment  pro  rata  of 
any  amount,  principal  or  interest,  that  may  be 


TRUST  DEEDS  247 

due  and  in  default  upon  said  bonds,  together 
with  interest  on  overdue  installments  of  in- 
terest, but  not  to  the  payment  of  any  bond  or 
coupon  the  time  for  payment  of  which  may 
have  been  extended.  In  case  all  of  the  said  pay- 
ments shall  be  made  in  full,  the  Trustees  after 
making  such  provisions  as  they  may  deem  ad- 
visable for  the  next  semiannual  installment  of 
interest  and  principal,  shall  restore  to  the 
Company  the  possession  of  the  premises  hereby 
conveyed.  This  power  of  entry  may  be  exer- 
cised as  often  as  occasion  therefor  shall  arise 
pending  the  trust;  and  this  power  of  attorney 
is  and  shall  be  irrevocable. 

AETICLE  XVI. 

In  case  (1)  default  shall  be  made  in  the  due 
and  punctual  payment  of  any  interest  on  any 
bond  hereby  secured,  and  any  such  default 
shall  continue  for  a  period  of  sixty  days ;  or  in 
case  (2)  default  shall  be  made  in  the  due  and 
punctual  payment  of  the  principal  of  any  bond 
hereby  secured;  or  in  case  (3)  the  Company 
shall  cut  timber  situate  upon  said  mortgaged 
premises  or  any  timber  mortgaged  hereunder 
or  suffer  the  same  to  be  cut  otherwise  than  is 
herein  provided  and  such  default  shall  con- 
tinue for  a  period  of  sixty  days;  or  in  case  (4) 
default  shall  be  made  in  the  due  observance 
or  performance  of  any  other  covenant,  condi- 
tion or  agreement  herein  required  to  be  kept 


248  TIMBER  BONDS 

or  performed  by  the  Company  and  such  de- 
fault shall  continue  for  a  period  of  sixty  days, 
then  and  in  every  such  case  the  Trustees,  or 
either  of  them,  (a)  may  enter  upon  and  take 
possession  of  the  mortgaged  property  or  any 
part  thereof,  collect  and  receive  all  rents,  is- 
sues, income  and  profits  therefrom  and  operate 
and  conduct  the  business  of  the  Company  to 
the  same  extent  and  in  the  same  manner  as 
the  Company  might  do;  (b)  may  cause  this 
mortgage  to  be  foreclosed  and  the  mortgaged 
property,  or  any  part  thereof,  to  be  sold;  (c) 
may  proceed  to  protect  and  enforce  the  rights 
of  the  Trustees  and  the  bondholders  hereunder 
whether  for  specific  performance  of  any  cove- 
nant, condition  or  agreement  herein  contained 
or  in  aid  of  the  execution  of  any  power  herein 
granted  or  for  the  enforcement  of  such  other 
appropriate  legal  or  equitable  remedy  as  may, 
in  the  opinion  of  counsel,  be  most  effectual  to 
protect  and  enforce  the  rights  aforesaid;  (d) 
shall  be  entitled  as  of  right  without  notice  to 
the  appointment  of  a  receiver  of  the  mortgaged 
property,  or  any  part  thereof,  and  the  Com- 
pany does  hereby  irrevocably  consent  to  such 
appointment;  or  (e)  in  addition  to  the  reme- 
dies above  provided,  the  Company  hereby  ir- 
revocably appoints  and  constitutes  said  Trus- 
tees or  either  of  them,  or  their  successors,  or 
either  of  them,  the  attorney  in  fact  for  the  Com- 
pany, and  in  its  name,  place  and  stead,  and 
hereby  authorizes  and  empowers  said  attorney 


TRUST  DEEDS  249 

or  attorneys  in  fact,  without  resort  to  legal 
proceedings,  and  without  order  of  any  court, 
to  sell  said  property  hereinbefore  described, 
or  any  part  thereof,  at  public  outcry,  either 
for  cash,  or  part  cash  and  part  on  deferred 
payments,  or  on  any  other  terms  deemed  best 
by  the  said  attorney  or  attorneys  in  fact,  and 
in  the  usual  manner  of  trustees'  sales  (at  which 
sale  the  Company  shall  have  the  right  to  pur- 
chase), and  to  execute  a  conveyance  or  con- 
veyances of  the  property  or  any  portion  there- 
of, and  of  the  equity  of  the  Company  therein; 
this  appointment  of  said  attorney  or  attorneys 
in  fact,  being  coupled  with  an  interest,  is  and 
shall  be  irrevocable,  and  any  corporation  or 
person,  successor  to  either  or  both  of  the  Trus- 
tees herein  named,  shall  succeed  such  Trustee 
as  attorney  in  fact  and  be  clothed  with  all  the 
rights  and  powers  conferred  by  this  instru- 
ment upon  the  attorney  or  attorneys  in  fact 
herein  appointed. 

AETICLE  XVII. 

The  Company  covenants  that  it  will  not  ap- 
ply for  nor  avail  itself  of  any  injunction  nor 
of  any  stay  proceedings,  nor  plead,  nor  in  any 
way  take  advantage  of  any  valuation  law,  ap- 
praisement law,  stay  law,  or  any  other  law, 
whether  now  in  force  or  which  may  hereafter 
be  enacted,  which  may  in  any  way  alter,  im- 
pair or  impede  the  rights  or  remedies  of  the 
holders  of  the  bonds  issued  hereunder,  or  of  the 


250  TIMBER  BONDS 

Trustees  as  herein  provided,  or  which  shall  af- 
fect or  change  the  time,  place,  means  or  mode 
of  perfecting  or  enforcing  such  rights  or  rem- 
edies and  it  hereby  expressly  waives  all  bene- 
fit and  advantage  of  any  and  all  such  laws. 

AETICLE  XVIII. 

Upon  any  foreclosure  sale  of  the  property 
hereby  mortgaged,  or  any  part  thereof,  the 
purchaser,  in  making  payment  therefor,  shall 
be  entitled,  after  paying  in  cash  so  much  as 
shall  be  necessary  to  cover  the  cost  and  ex- 
penses of  the  sale  and  of  the  proceedings  inci- 
dent thereto,  and  all  other  charges  that  may  be 
decreed  to  be  paid  in  cash,  to  appropriate  and 
use  toward  the  payment  of  the  remainder  of 
the  purchase  price  any  of  the  bonds  or  cou- 
pons issued  hereunder,  and  entitled  to  partici- 
pate in  the  proceeds  of  such  sale,  reckoning 
each  bond  or  coupon  so  appropriated  and  used 
at  such  sum  as  shall  be  payable  thereon  out  of 
the  net  proceeds  of  the  sale;  and  proper  re- 
ceipts thereupon  be  given  to  the  holders  of  such 
bonds  or  coupons  for  the  amount  so  payable 
thereon,  and  the  bonds  and  coupons,  if  the  net 
proceeds  of  the  sale  shall  be  sufficient  to  pay 
them  in  full,  shall  be  delivered  up  to  the  person 
making  the  sale,  whether  under  the  decree  of 
the  court  or  otherwise,  for  cancellation;  or  if 
the  proceeds  of  the  sale  shall  not  be  sufficient 
to  pay  such  bonds  or  coupons  in  full,  then  prop- 
er endorsement  shall  be  made  thereon  of  the 


TRUST   DEEDS  251 

amount   so   paid   and   they   shall   then   be   re- 
turned to  the  holders. 

ARTICLE  XIX. 

Upon  any  foreclosure  sale  of  the  property 
hereby  mortgaged  the  property  shall  be  sold 
either  as  a  whole  or  in  parcels  at  the  option  of 
the  Trustees  conducting  the  foreclosure  pro- 
ceedings; and  if  in  parcels  the  same  shall  be 
divided  as  shall  be  considered  for  the  best  in- 
terests of  the  bondholders  by  the  said  Lyon, 
Gary  &  Company,  as  may  be  evidenced  in  writ- 
ing addressed  to  the  Trustees  or  to  the  Court; 
or  in  case  of  such  foreclosure  sale  the  property 
may  at  the  option  of  the  Trustees  be  offered 
first  by  parcels  designated  as  above,  and  then 
as  a  whole,  that  offer  producing  the  highest 
price  for  the  entire  property  to  prevail — any 
law  statutory  or  otherwise  to  the  contrary  not- 
withstanding. And  the  Company  hereby  ex- 
pressly waives  the  right  to  require  any  such 
sale  to  be  made  by  the  acre,  or  in  parcels,  or 
the  right  to  select  such  parcels. 

In  case  of  a  foreclosure  of  this  mortgage  or 
deed  of  trust  the  proceeds  shall  be  applied: 

First,  to  the  payment  of  all  expenses  of  pro- 
tecting and  enforcing  this  trust,  including  rea- 
sonable compensation  to  the  Trustees,  and  all 
expenses  incurred  by  them  in  connection  here- 
with, and  including  reasonable  attorney's  fees 
for  any  service  that  may  be  rendered  either  in 
protecting  this  trust  or  enforcing  the  same. 


252  TIMBER  BONDS 

Second,  to  the  payment  pro  rata  of  all  the 
bonds  and  interest  coupons  secured  hereby 
without  preference  of  bonds  over  coupons  or 
coupons  over  bonds,  subject,  however,  to  the 
provisions  of  Article  V  hereof;  but  only  cou- 
pons that  have  matured  and  the  earned  por- 
tion of  those  next  maturing  shall  be  entitled 
to  participate  in  such  proceeds ;  and, 

Third,  the  balance,  if  any  there  be,  shall  be 
paid  to  the  Company  or  its  order. 

In  case  any  foreclosure  sale  of  the  premises 
hereby  mortgaged  should  fail  to  realize  suf- 
ficient funds  for  the  pajTuent  in  full  of  the 
entire  debt  hereby  secured,  including  all  au- 
thorized expenses,  court  costs,  attorneys'  fees, 
et  cetera,  the  balance  remaining  unpaid  shall 
be  and  remain  a  valid,  subsisting  and  enforcea- 
ble obligation  of  and  against  the  Company,  and 
a  deficiency  judgment  against  the  Company 
may  be  taken  thereon,  and  the  Court  may  di- 
rect in  the  decree  of  foreclosure  of  this  mort- 
gage ihsti  any  balance  which  may  remain  un- 
satisfied after  the  sale  of  the  mortgaged  prem- 
ises, and  the  application  of  the  proceeds  of  said 
sale  toward  the  payment  of  the  mortgage  in- 
debtedness, together  with  costs  and  interest, 
shall  be  satisfied  from  any  other  property  of 
the  Company. 

In  case  the  proceeds  of  foreclosure  sale  of 
the  premises  hereby  mortgaged  should  be  in- 
sufficient to  satisfy  in  full  the  mortgage  debt 
hereby    secured    and    then    existing,    together 


TRUST  DEEDS  253 

with  costs,  attorneys'  fees,  and  expenses  of 
foreclosure  and  sale,  then  and  in  such  event  the 
Trustees  herein  named,  or  any  successors  to 
such  Trustees,  are  hereby  authorized  to  com- 
mence suit  against  the  Company  in  any  court 
of  record  (State  or  Federal)  having  jurisdic- 
tion of  the  amount  involved,  in  any  State  or  in 
any  Judicial  Circuit  or  District  of  the  United 
States,  and  the  then  President  of  the  said  Lyon, 
Gary  &  Company  is  hereby  irrevocably  ap- 
pointed the  attorney  in  fact  of  the  Company 
to  enter  the  appearance  of  the  Company  in  said 
suit,  in  wliich  suit  the  said  Trustees  shall  be 
entitled  to  judgment  against  the  Company  for 
the  full  amount  of  such  deficiency,  with  in- 
terest at  the  rate  of  six  per  cent  per  annum, 
together  with  court  costs  and  attorneys'  fees, 
as  aforesaid,  and  in  any  suit  upon  such  judg- 
ment or  upon  any  renewal  thereof,  to  recover 
the  amount  of  such  judgment  or  the  renewal  of 
such  judgment,  such  President  is  likewise  au- 
thorized to  enter  the  appearance  of  the  Com- 
pany and  the  Trustees  are  authorized  to  take 
judgment  for  the  amount  of  said  original  judg- 
ment or  renewal  thereof  together  with  interest 
thereon  at  the  rate  aforesaid,  costs  of  court 
and  attorneys'  fees;  and  it  is  agreed  that  this 
clause  shall  be  deemed  a  separate  and  inde- 
pendent clause  of  this  instrument,  and  shall  be 
treated  and  deemed  as  a  contract  entered  into 
between  the  parties  hereto  to  be  governed  by 
the  laws  of  the  State  of  Illinois  to  the  same 


254  TIMBER  BONDS 

effect  as  if  this  instrument  had  been  entered 
into  in  said  State  and  were  to  be  performed 
there. 

AETICLE  XX. 

Except  as  may  be  herein  expressly  provided 
to  the  contrary,  no  right  or  remedy  herein  con- 
ferred upon  or  reserved  to  the  Trustees  shall 
be,  or  is  intended  to  be  such  right  or  remedy 
herein  provided  shall  be  cumulative,  and  shall 
be  in  addition  to  every  other  right  or  remedy 
given  hereunder,  or  now  or  hereafter  existing 
at  law  or  in  equity  or  by  statute;  and  every 
power  and  remedy  given  by  this  instrument  to 
the  Trustees  may  be  exercised  from  time  to 
time  as  often  as  may  be  deemed  expedient.  No 
delay  or  omission  of  the  Trustees  or  bondhold- 
ers to  exercise  any  right  or  power,  arising  from 
any  default,  shall  impair  any  such  right  or 
power,  or  shall  be  construed  to  be  a  waiver 
of  any  such  default  or  an  acquiescence  therein. 

AETICLE  XXI. 

Every  holder  of  any  of  the  bonds  secured 
hereby  accepts  the  same  subject  to  the  express 
understanding  and  agreement  that  every  right 
of  action,  whether  at  law  or  in  equity,  under 
this  instrument,  is  vested  exclusively  in  the 
Trustees,  and  under  no  circumstances  shall  the 
holder  of  any  bonds  or  coupons,  or  any  num- 
ber of  such  holders,  have  any  right  to  institute 
any  action  at  law  or  any  suit  or  proceeding  in 


TRUST  DEEDS  255 

equity,  or  otherwise,  under  this  instrument,  or 
upon  any  bond  or  coupon  secured  hereby,  for 
the  purpose  of  enforcing  any  covenant  or  rem- 
edy herein  or  in  said  bonds  or  coupons  con- 
tained, or  to  foreclose  this  mortgage,  except  in 
case  of  refusal  on  the  part  of  the  Trustees  to 
comply  with  any  duty  imposed  on  them  in  re- 
spect of  any  such  covenant  or  foreclosure  after 
demand  by  the  holder  or  holders  of  such  bonds 
or  coupons  and  the  production  of  such  bonds 
or  coupons  by  the  holder  thereof  to  the  Trus- 
tees, or  the  furnishing  by  such  holders  of  oth- 
er evidence  satisfactory  to  the  Trustees  that 
they  are  such  holders,  and  the  giving  to  the 
Trustees  of  indemnity  satisfactory  to  them, 
securing  them  against  liability  by  reason  of 
the  action  requested;  but  no  inaction  by  said 
Trustees  upon  any  such  request  shall  be  deemed 
a  refusal  until  after  the  expiration  of  a 
reasonable  time  and  not  less  than  twenty  (20) 
days  for  the  consideration  thereof  by  said 
Trustees. 

In  every  case  in  which  the  Trustees  are  au- 
thorized or  required,  under  any  provision  of 
this  instrument,  to  take  any  action  upon  the 
request  of  the  holders  of  said  bonds,  the  Trus- 
tees shall  have  the  right  to  require  the  person 
or  persons  presenting  such  requests  to  furnish 
proof  as  to  the  ownership  of  such  bonds  as 
may  be  presented  by  him  or  them,  by  affidavit 
or  other  evidence  satisfactory  to  the  Trustees; 
and  if  such  proof  be  so  required,  the  said  re- 


256  TIMBER  BONDS 

quest  shall  be  without  effect  until  such  proof 
shall  be  furnished. 

ARTICLE  XXII. 

The  Trustees  herein  named,  or  either  of 
them,  may  resign  or  discharge  themselves  of. 
and  from  the  trust  hereby  created,  by  notice 
in  writing  to  be  given  to  the  Company  and  pub- 
lished once  a  week  for  two  consecutive  weeks 
in  a  paper  of  general  circulation  published  in 
the  said  City  of  Chicago,  at  least  thirty  days 
before  such  resignation  shall  take  effect,  or 
such  shorter  time  as  the  party  of  the  first  part 
may  accept  as  sufficient  notice;  but  such  resig- 
nation shall  take  effect  immediately  upon  the 
appointment  of  new  Trustees  herein  in  place 
of  the  Trustees  resigning  if  such  new  Trustees 
shall  be  appointed  before  the  time  limited  by 
such  notice. 

The  corporation  of  Lyon,  Gary  &  Company 
may  in  like  manner  resign  or  discharge  itself 
of  the  duty  herein  imposed  upon  it,  in  which 
case  successors  to  its  duties  and  authority  shall 
be  selected  and  appointed  in  like  manner  as 
successor  Trustees  hereunder  may  be  selected 
and  appointed. 

ARTICLE  XXIII. 

In  case  the  trust  created  hereby  shall  be- 
come vacant  by  reason  of  the  resignation,  in- 
capacity or  inability  to  act  of  the  said  Trustees, 
or  either  of  them,  or  of  any  successor  Trustee, 


TRUST   DEEDS  257 

or  otherwise  (except  as  provided  in  tiie  follow- 
ing Article  hereof),  it  shall  be  lawful  for  the 
holders  of  the  majority  in  amount  of  the  bonds 
then  outstanding  to  appoint  a  successor,  or 
successors,  by  a  writing  by  them  signed,  or,  for 
any  Judge  of  the  United  States  Circuit  Court 
for  the  Seventh  Judicial  Circuit  in  default  of 
such  appointment,  to  appoint  such  a  successor, 
or  successors,  on  the  application  of  the  holders 
of  not  less  than  one-tenth  in  amount  of  the 
said  bonds  then  outstanding, — one  Trustee  al- 
ways to  be  a  private  person,  and  the  other  to 
be  a  Trust  Company,  organized  under  the  laws 
of  the  State  of  Illinois. 

And  upon  any  such  appointment  being  made, 
and  the  said  trust  being  accepted,  such  suc- 
cessors or  substitute  Trustees  shall,  without 
further  act  or  deed,  become  vested  with  all  and 
singular  the  estate,  rights  and  powers,  and 
shall  perform  all  the  duties  of  Trustees,  in 
like  manner,  and  with  the  same  effect  as  if 
named  in  this  instrument  as  Trustees; 

Always  peovided,  however,  that  the  imme- 
diate successor,  if  any  there  be,  to  John  K. 
Lyon,  Trustee,  shall  be  John  W.  Gary,  of  Chi- 
cago, State  of  Illinois,  if  said  Gary  will  at  the 
time  accept  such  trust. 


ARTICLE  XXW. 

The  holders  of  a  majority  in  amount  of  the 
outstanding  bonds  secured  by  this  instrument, 


258  TIMBER  BONDS 

provided  the  Company  shall  join,  (or  the  hold- 
ers of  three-quarters  in  amount  of  the  bonds 
then  outstanding  hereunder  without  such  join- 
der) may,  by  a  writing  under  tlieir  respective 
hands  and  seals,  change  the  Trustees  and  ap- 
point new  Trustees  (one  Trustee  always  to  be 
a  private  person  and  the  other  to  be  a  Trust 
Company  organized  under  the  laws  of  the  State 
of  Illinois,  said  John  W.  Gary  to  be  the  imme- 
diate successor  Trustee  to  John  K.  Lyon), 
which  instrument,  when  recorded  in  the  proper 
offices  for  recording  deeds  and  mortgages  in 
Liberty  County,  State  of  Georgia,  (and  on  pay- 
ment to  said  Trustees  of  all  charges  and  com- 
pensation to  which  they  shall  at  that  time  be 
entitled  hereunder  including  reasonable  coun- 
sel and  attorneys'  fees)  shall  ipso  facto,  and 
without  any  further  action,  substitute  such  new 
Trustees  in  the  place  of  the  Trustees  herein 
named,  or  in  place  of  any  successor  Trustees, 
with  all  the  rights,  powers  and  privileges 
granted  to  the  said  Trustees  under  this  instru- 
ment, and  no  convevance  from  the  old  Trus- 
tees  to  the  said  Trustees  thus  appointed  shall 
be  necessary  to  convey  the  trust  premises  to 
such  new  Trustees,  but  the  old  Trustees  shall 
and  will,  upon  the  request  of  such  new  Trus- 
tees, execute  any  conveyance  necessary  or 
proper  in  order  to  vest  the  said  premises  in 
such  new  Trustees. 

In  case  of  the  death  or  resignation,  or  the 
incapacity   or  inability   of   the   said  John  K. 


TRUST   DEEDS  269 

Lyon  to  act  as  Trustee  hereunder,  the  said 
Corporation  Trustee  and  said  Lyon,  Gary  & 
Company  may  in  like  manner,  to  wit,  by  writing 
properly  executed  and  recorded,  appoint  an- 
other person  in  his  place  and  stead,  in  which 
case  such  successor  so  appointed  shall  succeed 
to  all  the  title,  rights,  powers  and  privileges 
herein  or  hereby  conferred  upon  or  vested  in 
the  said  John  K.  Lyon  (his  immediate  suc- 
cessor, however,  to  be  the  said  John  W.  Gary), 
this  being  an  alternative  method  of  filling  sucli 
vacancy,  in  addition  to  that  above  provided. 

ARTICLE  XXV. 

It  is  expressly  understood  and  agreed  that  no 
obligation  whatever  rests  upon  the  Trustees 
to  see  to  the  recording  of  this  instrument,  nor 
to  do  any  act  suitable  or  proper  to  be  done  for 
the  continuing  of  the  lien  created  hereby,  nor 
to  give  notice  of  the  existence  of  such  lien, 
nor  to  do  any  act  which,  by  the  terms  of  this 
instrument,  is  required  to  be  done  by  some 
party  hereto  other  than  said  Trustees.  Said 
Trustees  shall  be  under  no  duty  or  obligation 
not  affirmatively  expressed  on  the  face  of  these 
presents.  Nor  are  said  Trustees  required  by 
this  instrument  to  take  any  action  nor  do  any 
act  made  requisite  by  statute  for  protecting, 
perpetuating  or  keeping  good  the  lien  of  these 
presents  upon  the  land,  premises  and  property 
or  any  part  thereof,  hereby  conveyed  or  intend- 


260  TIMBER  BONDS 

ed  SO  to  be ;  nor  shall  the  said  Trustees  be  held 
responsible  for  the  consequence  of  any  breach 
by  the  Company  or  by  its  agents  or  servants  of 
any  of  the  covenants  herein  or  in  said  bonds 
contained,  on  the  part  of  said  party  of  the  first 
part  to  be  kept  and  performed,  nor  for  or  on 
account  of  any  act  of  the  Companj^  or  of  its 
agents  or  servants,  of  any  kind,  character  or 
nature  whatsoever.  Said  Trustees  shall  have 
no  responsibility  as  to  the  validity  of  this  mort- 
gage or  deed  of  trust,  nor  as  to  the  execution 
or  acknowledgment  thereof,  nor  as  to  the 
amount  or  extent  of  the  security  atforded  by 
the  property  covered  hereby;  nor  shall  said 
Trustees  in  any  other  manner,  or  under  any 
circumstances,  be  answerable  or  accountable, 
except  for  bad  faith;  it  being  expressly  under- 
stood and  agreed  that  the  recitals  herein  con- 
tained are  made  by  and  on  behalf  of  the  said 
party  of  the  first  part  and  that  the  Trustees 
are  not  responsible  for  the  correctness  thereof. 
Said  Trustees  shall  not  be  under  any  obliga- 
tion to  take  any  action  toward  the  execution 
or  enforcement  of  the  trust  hereby  created, 
which,  in  their  opinion,  would  be  likely  to  in- 
volve them  in  expense  or  liability,  nor  to  de- 
fend any  suit,  unless  one  or  more  of  the  hold- 
ers of  the  bonds  hereby  secured  shall,  as  often 
as  reqnirefd  by  the  said  Trustees,  furnish  them 
with  reasonable  and  satisfactory  indemnity 
against  such  expense  or  liability;  nor  shall  the 
said  Trustees  be  required  to  take  notice  of 


TRUST  DEEDS  261 

any  default  liereimder,  unless  notified  in  writ- 
ing of  such  default  by  the  holders  of  at  least 
ten  (10)  per  oentum  of  the  antount  of  the  bonds 
hereby  secured  and  then  outstanding,  nor  to 
take  any  action  in  respect  of  an.y  default  un- 
less requested  to  take  such  action  by  writing, 
signed  by  the  holders  of  as  great  a  proportion 
of  said  bonds  and  be  tendered  indemnity  as 
aforesaid,  anything  herein  contained  to  the 
contrary  notwithstanding ;  but  neither  any  such 
notice  or  request,  nor  this  provision  therefor, 
shall  affect  any  discretion  herein  given  to  the 
said  Trustees  to  determine  whether  or  not  they 
will  take  action  in  respect  to  such  default,  or 
to  take  action  without  such  request. 

The  Trustees  shall  be  protected  in  acting 
upon  any  request,  consent,  certificate,  bond, 
affidavit,  or  other  paper  or  document  believed 
by  them  to  be  genuine  and  to  be  signed  by  the 
proper  party  or  parties. 

Said  Trustees  shall  be  entitled  to  be  reim- 
bursed for  all  proper  outlays  of  every  sort  and 
nature  by  them  incurred,  or  for  which  they 
may  be  obligated  in  the  discharge  of  this  trust, 
and  to  receive  a  reasonable  and  proper  com- 
pensation for  any  duties  that  they  may  at  any 
time  perform  in  the  discharge  of  the  sar^e,  and 
shall  have  a  lien  thetefor  upon  the  mortgaged 
property,  prior  and  pat*amouut  to  the  bonds 
hereby  secured. 

All  expenses,  fees,  taxes  and  disbursements 
of  any  kind  which  have  been  made,  or  which 


262  TIMBER  BONDS' 

may  be  made  or  incurred  by  the  Trustees  in 
order  to  comply  with  any  law  or  laws  of  the 
State  of  Georgia  respecting  foreign  corpora- 
tions, or  relating  to  the  right,  authority,  or 
qualification  of  the  Trustees  to  accept  this  trust 
and  perform  their  duties  hereunder,  and  all 
liabilities  and  expenses  which  may  be  incurred 
by  them,  and  all  penalties,  judgments  or  for- 
feitures which  may  be  assessed,  levied,  or  re- 
covered against  the  Trustees  for  failure  to 
comply  with  anj'  such  law  or  laws  shall  be  a 
charge  and  shall  constitute  a  lien  upon  the 
mortgaged  property  and  premises  prior  and 
paramount  to  the  bonds  hereby  secured.  In 
case  at  any  time  it  shall  be  necessary  and  prop- 
er for  the  said  Trustees,  or  their  successors,  to 
make  any  investigation  respecting  any  facts, 
preparatory  to  taking  or  not  taking  any  action, 
or  doing  or  not  doing  anything  under  this  deed 
of  trust,  the  certificate  of  the  said  party  of  the 
first  part  under  its  corporate  seal  and  sworn 
to  by  its  President,  Treasurer  or  Secretary, 
shall  be  sufficient  evidence  of  such  fact  to  pro- 
tect the  said  Trustees,  or  their  successors,  in 
any  action  that  they  may  take  or  decline  to 
take  by  reason  of  the  supposed  existence  of 
such  fact. 

Unless  it  shall  in  writing  expressly  agree  to 
do  so,  the  Corporation  Trustee  shall  not  be 
obligated  to  pay  interest  on  any  sum  of  money 
which  may  be  deposited  with  it  under  any  of 
the  provisions  of  this  instrument,  but  if  said 


TRUST  DEEDS  263 

Corporation  Trustee  shall  in  writing  expressly 
agree  to  pay  interest  on  any  such  deposits,  the 
amount  of  such  interest  shall  be  credited  to 
or  paid  into  the  fund  for  retiring  bonds  as 
provided  for  herein. 

ARTICLE  XXVI. 

John  K.  Lyon,  one  of  the  parties  of  the  sec- 
ond part,  has  been  appointed  as  Trustee  here- 
under so  that  if  by  any  present  or  future  law 
in  any  jurisdiction  in  which  it  may  be  necessary 
to  perform  any  act  in  the  execution  of  the 
trusts  hereby  created,  the  Corporation  Trus- 
tee, or  its  successor,  or  successors,  may  be 
incompetent  or  unqualified  or  unable  or  unwill- 
ing to  act  as  such  Trustee,  then  all  of  the  acts 
required  to  be  performed  in  such  jurisdiction 
in  the  execution  of  the  trusts  hereby  created 
shall  and  will  be  performed  by  said  John  K. 
Lyon  as  Trustee,  or  his  successor,  or  succes- 
sors, acting  alone.  Except  as  it  ma^'  be  deemed 
necessary  for  said  John  K.  Lyon,  his  succes- 
sor, or  successors,  to  solely  execute  the  trusts 
hereby  created,  Union  Trust  Company,  Trus- 
tee, or  its  successor,  or  successors,  may  solely 
have  and  exercise  the  powers  and  shall  be  sole- 
ly charged  with  the  performance  of  the  duties 
hereinbefore  declared  on  the  part  of  the  Trus- 
tees to  be  had  and  exercised,  or  to  be  per- 
formed. Any  request  in  writing  by  the  Cor- 
poration Trustee,  or  by  any  Trustee  appointed 


264  TIMBER  BONDS 

in  succession  to  it,  to  the  said  John  K.  Lyon, 
Trustee  hereunder,  or  to  any  Trustee  appointed 
in  succession  to  him,  shall  be  sufficient  warrant 
for  the  individual  Trustee,  or  his  successor, 
taking  such  action  as  may  be  so  requested,  and 
shall  relieve  him  of  all  liability  in  the  premises. 
Such  individual  Trustee,  or  his  successor,  may 
delegate  to  the  Corporation  Trustee  herein 
named,  or  its  successor,  the  exercise  of  any 
power  discretionary  or  otherwise  conferred  by 
any  provisions  of  this  instrument.  And  it  is 
further  provided  that  neither  of  the  Trustees 
herein  named,  nor  any  successor  Trustee  to 
either  of  them,  shall  be  liable  for  any  default 
or  act  of  omission  or  commission  of  any  co- 
trustee. 

ARTICLE  XXVII. 

The  word  ' '  Trustees ' '  as  used  in  this  instru- 
ment shall  be  held  and  construed  to  mean  the 
Trustees  herein  named,  or  their  successor  or 
successors  for  the  time  being  in  the  trust  here- 
by created;  the  words  ''the  Company"  shall 
be  held  and  construed  to  mean  Southern  Tim- 
ber Company,  its  successors  and  assigns. 

And  wherever  the  name  "Lyon,  Gary  & 
Company"  is  used  herein  it  shall  be  held  and 
construed  to  mean  Lyon,  Gary  &  Company,  the 
present  Illinois  corporation,  or  such  person, 
firm  or  corporation  as  may  succeed  said  cor- 
poration according  to  the  terms  of  this  instru- 
ment. 


TRUST  DEEDS  265 

iVRTICLE  XXVIII. 

Union  Trust  Company  and  John  K.  Lyon 
hereby  accept  the  trusts  herein  and  hereby  de- 
clared and  created,  and  agree  to  perform  the 
same  upon  the  terms  and  conditions  hereinbe- 
fore set  forth. 

In  witness  whereof,  the  said  Southern  Tim- 
ber Company  and  the  said  Union  Trust  Com- 
pany have  caused  this  instrument  to  be  execut- 
ed in  their  corporate  names  by  their  respective 
Presidents  or  Vice-Presidents,  and  their  cor- 
porate seals,  duly  attested  by  their  respective 
Secretaries,  to  be  hereunto  affixed,  and  the  said 
John  K.  Lyon  has  likewise  executed  the  same, 
all  in  the  presence  of  witnesses,  on  the  day 
and  year  first  above  written. 

Southern  Timber  Company, 

f  CORP.  1      By  W.  J.  Robertson, 
Attest:  I   seal  J  Its  Vice-President. 

T.  F.  Cook, 

Its  Secretary. 
Signed,   sealed  and   delivered   by 
Southern   Timber   Company  in   the 
presence  of: 

D.  G.  Heidt,  Jr., 
Edw'd  E.  Barthell, 


SEAL   SUPERIOR     )  J.  B.   FraSER, 

\C0URT,  liberty )C/e//i"  Superior  Court,  Liherty 
(co.,  GEORGIA       )         County,  State   of   Georgia. 


266  timber  bonds 

Union  Trust  Company, 

f  CORP.  I      By  F.  L.  WiLK, 
Attest:  I    SEAL  J     Its  Vice-President. 

RuFus  F.  Chapin, 
Its  Secretary. 

Signed,  sealed  and  delivered  by 
Union  Trust  Company  in  the  pres- 
ence of: 

Fred  W.  Low,  .  ,    ^ 

in    -D    a  notary's 

h.    Jr*.    tSCHRULER,       j  [ 

H.  L.  Benson,         ^  > 

Notary  Public,  Cook  County,  State  of 
Illinois. 

John  K.  Lyon,  L.  S. 

Signed,  sealed  and  delivered  by 
John  K.  Lyon,  in  the  presence  of: 

W.  K.  Fifield,  r  ,   ^ 

r.  -in  NOTARY  S 

Calvin  Fentress,     \  \ 

Fred  C.  Strobehn,    ^  '            •' 

Notary  Public,  Cook  County,  State  of 
Illinois. 

I,  J.  B.  Fraser,  Clerk  of  the  Su- 
perior Court  of  Liberty  County, 
State  of  Georgia,  hereby  certify 
that  the  foregoing  mortgage  was 
filed  in  my  office  for  record  at  1:30 
o'clock  p.  m.,  on  the  19th  day  of  No- 
vember,   1910,    and    that   the    same 


TRUST   DEEDS  267 

has  been  dnly  recorded  at  pages  255 
to  271  inclusive  in  Mortgage  Book 
A-H. 

This  November  19,  1910. 

COURT,    LIBERTY^!  J.  B.  FraSEE,, 

SEAL  SUPERIOR*)  C^er^*  Superior  Court,  Liberty 
CO.,  GEORGIA     I      County,  State  of  Georgia. 


268  •  TIMBER  BONDS 


FIRST    MORTGAGE 


FISCHEE  LUMBER  CO. 

TO 

UXIOX   TRUST   COMPANY 

AND 

JOHN    K.   LYON 

TRUSTEES. 


DATED    JANUARY    2,    1911 


TO  SECURE  $40,000  SIX  PER  CENT  GOLD  BONDS, 
DATED  JANUARY   2,   1911. 


TRUST   DEEDS  269 

THIS  INSTRUMENT,  made  and  entered  into 
this  second  day  of  January,  A.  D.  1911,  by 
and  between  Fischer  Lumber  Co.,  a  corpora- 
tion organized  and  existing  under  and  by 
virtue  of  the  laws  of  the  State  of  Oregon 
(sometimes  hereinafter  for  brevity  called 
the  Company),  party  of  the  first  part,  and 
Union  Trust  Company,  a  corporation  organ- 
ized and  existing  under  and  by  virtue  of  the 
laws  of  the  State  of  Illinois  (sometimes 
hereinafter  referred  to  as  the  Corporation 
Trustee),  and  John  K.  Lyon,  of  Hubbard 
Woods,  Cook  County,  State  of  Illinois,  as 
Trustees,  parties  of  the  second  part, 

WITNESSETH  : 

Wheeeas,  Fischek  Lumber  Co.  is  the  owner 
of  certain  timber,  lands,  logging  rights,  log- 
ging plant,  logging  flumes,  a  planing  mill  and 
a  saw-mill,  with  their  equipment  and  appur- 
tenances in  Lane  and  Linn  Counties,  State  of 
Oregon;  and  has  full  power  and  authority 
under  its  charter  and  the  laws  of  the  State  of 
Oregon  to  borrow  money  for  the  transaction  of 
its  business  in  the  exercise  of  its  corporate 
powers,  to  issue  its  negotiable  bonds  to  evidence 
the  indebtedness  thus  incurred,  and  to  mort- 
gage its  property  to  secure  the  payment  of  the 
same;  and 

Wheeeas,  by  the  unanimous  action  of  its 
B5ard  of  Directors,  concurred  in  by  the  owners 
and  holders  of  its  entire  capital  stock  (both  of 
which  actions  have  been   dulv  taken  and   ex- 


270  TIMBER  BONDS 

pressed  according  to  law)  the  Company  has 
resolved  to  borrow  monej^  for  its  corporate 
purposes,  and  to  issue  and  dispose  of  its  nego- 
tiable mortgage  bonds  therefor;  and  to  secure 
the  payment  of  said  bonds,  together  with  inter 
est  thereon,  by  a  mortgage  or  deed  of  trust  in 
the  form  of  this  instrument  upon  its  property 
hereinafter  described,  together  with  the  rents, 
issues  and  profits  of  the  same,  and  which  mort- 
gage or  deed  of  trust  shall  be  a  first  lien 
thereon;  and 

Wheeeas,  by  unanimous  action  of  its  Board 
of  Directors,  concurred  in  by  the  owners  and 
holders  of  its  entire  capital  stock  (both  of 
which  actions  have  been  duly  taken  and  ex- 
pressed according  to  law)  the  Company  has 
further  resolved  that  said  bonds  shall  bear 
date  January  2,  1911,  shall  be  for  the  aggre- 
gate amount  of  Forty  Thousand  (40,000)  Dol- 
lars, shall  be  40  in  number;  numbered  consecu- 
tively from  1  to  40,  both  numbers  inclusive, 
shall  be  of  the  denomination  of  $1,000 ;  shall  be- 
come due  and  payable  as  follows,  to  wit: 

Bonds  Numbered.  Total  Amount  Maturities. 

1  to     5  inclusive $5,000 July  1,  1912; 

6  to  10  inclusive $5,000 January  1,  1913 

11  to  15  inclusive $5,000 July  1,  1913; 

16  to  20  inclusive $5,000 January  1,  1914 

21  to  25  inclusive $5,000 July  1,  1914; 

26  to  30  inclusive $5,000 January  1,  1915 

31  to  35  inclusive $5,000 July  1,  1915; 

36  to  40  Inclusive $5,000 January  1,  1916 

all  of  which  bonds  shall  be  payable  to  bearer 
(unless  registered),  in  gold  coin  of  the  U.  S. 


TRUST   DEEDS  271 

of  America  of  the  standard  of  weight  aud  fine- 
ness existing  on  January  2,  1911,  notwithstand- 
ing any  law  which  may  now  or  hereafter  make 
anything  else  legal  tender  in  pajinent  of  debtt^, 
at  the  office  of  Ladd  and  Tilt  on  Bank  in  the 
City  of  Portland,  State  of  Oregon,  or  at  the  op- 
tion of  the  holder  at  the  banking  house  of  Union 
Trust  Company  in  the  City  of  Chicago,  State 
of  Illinois,  together  with  interest  on  said  bonds 
at  the  rate  of  six  (6)  per  centum  per  annum, 
which  interest  shall  be  similarly  payable  in  like 
gold  coin  July  1,  1911,  aud  semiannually  there- 
after on  the  first  day  of  January  and  the  first 
day  of  July  in  each  year  until  the  principal  sum 
shall  be  fully  paid,  upon  the  presentation  and 
surrender  of  the  coupons  annexed  to  each  of 
said  bonds  as  they  respectively  become  due,  at 
the  places  of  payment  of  the  principal  of  said 
bonds ;  that  the  said  bonds  shall  be  executed  in 
the  name  of  the  Company  by  the  President  (or 
the  Vice  President)   and  the  Secretary  of  the 
Company,  with  its  corporate  seal  affixed,  and 
that  the  coupons  issued  to  evidence  the  inter- 
est upon  said  bonds  until  their  maturity  shall 
be  authenticated  by  the  signature  of  the  pres- 
ent Treasurer  of  the  Company;  and  that  each 
of  said  bonds,  and  each  of  the  coupons  thereto 
attached,   and  the   Trustee's   and   Eegistrar's 
certificates  endorsed  thereon  shall  be  substan- 
tially in  the  forms  following,  to  wit: 


272  TIMBER  BONDS 

UNITED  STATES  OF  AMERICA. 

State  of  Oreqok. 

$1000  Number $1000 

Fischer  Lumber  Co. 

First  Mortgage  Six  Per  Cent.  Gold  Bond. 

For  value  received  Fischer  Lumber  Co. 
(hereinafter  called  the  Company),  a  corpora- 
tion organized  and  existing  under  the  laws  of 
the  State  of  Oregon,  hereby  promises  to  pay 
to  the  bearer  hereof,  or  in  case  this  bond  be 
registered,  then  to  the  registered  holder  hereof, 
One   Thousand   Dollars,    on   the   first   day   of 

,   19 .... ,   and   to   pay  interest 

thereon  from  the  date  hereof  at  the  rate  of  six 
(6)  per  centum  per  annum  payable  semi- 
annually on  the  first  day  of  January  and  the 
first  day  of  July  in  each  year,  upon  the  presen- 
tation and  surrender  of  the  couppns  hereto  an- 
nexed as  they  severally  become  due,  both  prin- 
cipal and  interest  being  payable  at  the  office  of 
Ladd  and  Tilton  Bank  in  the  City  of  Portland, 
State  of  Oregon,  or  at  the  option  of  the  holder 
hereof,  at  the  banking  house  of  Union  Trust 
Company  in  the  City  of  Chicago,  and  State  of 
Illinois,  in  gold  coin  of  the  United  States  of 
America,  of  or  equal  to  the  present  standard 
of  weight  and  fineness,  notwithstanding  any 
law  which  may  now  or  hereafter  make  anything 
else  legal   tender   for   the   payment   of   debts. 


TRUST  DEEDS  273 

without  deduction  for  any  United  States,  State, 
County,  Municipal  or  other  tax  or  taxes  or  gov- 
ernmental or  other  charges,  which  the  Company 
or  its  successors  or  assigns,  or  the  Trustees  or 
either  of  them  hereinafter  mentioned,  may  be 
required  or  permitted  to  pay,  or  to  deduct  or 
retain  therefrom  under  or  by  reason  of  any 
present  or  future  law. 

This  bond  is  one  of  a  series  of  40  bonds  in 
denominations  of  $1,000,  numbered  consecu- 
tively from  1  to  40,  both  numbers  inclusive,  ma- 
turing at  divers  dates  during  the  period  from 
July  1,  1912,  to  January  1,  1916,  both  dates  in- 
clusive, amounting  in  the  aggregate  as  to  the 
principal  thereof,  to  $40,000,  issued  under  the 
provisions  and  all  equally  secured  by  a  first 
mortgage  or  deed  of  trust  dated  January  2, 
1911,  duly  authorized,  executed,  acknowledged 
and  delivered  by  the  Company  to  Union  Trust 
Company  of  Chicago,  Illinois,  and  John  K. 
Lyon,  of  Hubbard  Woods,  Cook  County,  Illi- 
nois, as  Trustees,  which  mortgage  or  deed  of 
trust  conveys  timber,  lands,  logging  rights,  a 
logging  plant,  a  planing  mill  and  a  saw-mill, 
with  their  respective  equipment  and  appurte- 
nances, and  other  property,  in  the  Counties  of 
Lane  and  Linn,  in  the  State  of  Oregon,  and 
which  has  been  properly  recorded  in  both  of 
said  counties.  For  a  more  complete  descrip- 
tion of  the  property  thereby  mortgaged;  the 
nature  and  extent  of  the  security;  the  descrip- 
tion  of   the   bonds    therebv   secured    and    the 


274  TIMBER  BONDS 

rights  of  the  holders  thereof  under  the  same 
and  the  terms  and  conditions  upon  which  said 
bonds  are  issued,  reference  is  hereby  made  to 
said  mortgage  or  deed  of  trust  with  the  same 
force  and  effect  as  if  the  provisions  thereof 
were  herein  fully  set  forth. 

In  the  manner  provided  in  said  mortgage  or 
deed  of  trust,  this  bond  may  be  redeemed  at 
the  election  of  the  Company,  at  any  interest 
payment  date  before  its  date  of  absolute  ma- 
turity upon  payment  to  the  holder  hereof,  or 
to  Union  Trust  Company,  one  of  the  Trustees 
thereunder,  for  the  benefit  of  such  holder,  of 
the  principal  hereof  together  with  all  interest 
due  hereon  at  the  date  fixed  for  such  redemp- 
tion, and  a  premium  of  three  (3)  per  centum  on 
the  principal  hereof,  and  in  event  of  default  as 
defined  in  the  aforesaid  mortgage  or  deed  of 
trust,  the  principal  of  this  bond  may  be  de- 
clared and  become  due  and  payable  in  the  man- 
ner and  with  the  effect  therein  provided. 

This  bond  shall  pass  by  delivery  unless  reg- 
istered, but  it  may  be  registered  as  to  the  prin- 
cipal hereof  in  the  holder's  name  on  registra- 
tion books  kept  for  that  purpose  by  the  said 
Union  Trust  Company,  Eegistrar,  such  regis- 
try being  noted  hereon  by  said  Registrar,  after 
which  only  such  registered  holder  shall  be  en- 
titled to  receive  the  principal  hereof;  and  if 
registered  no  subsequent  transfer  hereof  shall 
be  valid,  unless  made  on  said  Registrar's  books 
and  similarly  noted  hereon;  but  the  same  may 


TRUST  DEEDS  275 

be  discharged  from  registry  by  transfer  to 
bearer,  after  which  it  shall  be  transferable  by 
delivery.  It  niay  be  registered  again,  however, 
in  the  manner  above  provided.  The  registry  of 
this  bond  shall  not  impair  the  negotiability  of 
the  coupons,  but  they  shall  continue  to  be  trans- 
ferable by  delivery  notwithstanding  such  regis- 
tration. 

The  Company  liereby  consents  in  case  of  the 
foreclosure  of  the  mortgage  or  deed  of  trust 
given  to  secure  the  payment  of  the  said  bonds, 
to  the  entr}-  of  a  deficiency  judgment  against  it, 
and  that  the  court  may  direct  in  any  decree  of 
foreclosure  of  said  mortgage  or  deed  of  trust 
that  any  balance  due  with  costs  and  interest, 
which  may  remain  unsatisfied  after  the  sale  of 
the  said  mortgaged  premises  and  the  applica- 
tion of  the  proceeds  of  such  sale  toward  the 
payment  of  the  said  bonds,  shall  be  satisfied 
from  any  of  its  property. 

This  l}ond  shall  not  be  obligatory  for  any 
purpose  until  it  shall  have  been  authenticated 
by  the  certificate  of  Union  Trust  Company,  one 
of  the  Trustees  under  said  mortgage  or  deed  of 
trust,  indorsed  hereon. 

In  witness  whereof,  Fischer  Lumber  Co.  has 
caused  this  instrument  to  be  signed  in  its  cor- 
porate name  by  its  President  and  its  corporate 
seal  to  be  hereunto  af&xed  and  attested  by  its 
Secretary,  and  the  interest  coupons  hereto  at- 
tached to  be  authenticated  by  the  signature  of 
its  Treasurer,  this  second  day  of  January,  1911. 


276  timber  bonds 

Fischer  Lumber  Co., 

By 

//«  Bre&ide'iit. 
Attest : 

Its  Secretary. 

$30  COUPONS. 

On  the  first  day  of ,  19 .... , 

Fischer  Lumber  Co.,  an  Oregon  corporation, 

will  pay  to  bearer Dollars 

in  gold  coin  of  the  United  States  of  America  of 
the  standard  existing  on  January  2,  1911,  at 
the  office  of  the  Ladd  and  Tilton  Bank  in  the 
City  of  Portland,  State  of  Oregon,  or  at  the 
holder's  option  at  the  banking  house  of  Union 
Trust  Company  in  the  City  of  Chicago,  State 
of  Illinois,  without  deduction  for  taxes,  being 
six  months'  interest  due  that  date  on  its  first 
mortgage  gold  bond  of  January  2,  1911,  No. 


Treasurer. 

TRUSTEE'S  CEETIFICATE. 

This  is  to  certify  that  tliis  is  one  of  the  bonds 
described  in  and  secured  by  the  mortgage  or 
deed  of  trust  within  referred  to. 

UiTTON-  Trust  Company,  Trustee, 

By , 


TRUST  DEEDS 


REGISTRATION. 


277 


Notice:  There  must  be  no  writing  in  this 
form  except  by  the  Registrar,  the  Union  Trust 
Coinpany. 


Date  of 
Registration 

Name  and  Adubkss 
Registered  Ownee 

Signature  op 
Registrar 

and  which  bonds  shall  also  bear  the  personal 
guaranty  of  certain  persons  pecuniarily  inter- 
ested in  the  Company  and  in  the  sale  of  the 
said  bonds,  said  guaranty  being  in  form  sub- 
stantially as  follows: 


GUARANTY. 

Makcola,  Oregon,  January  2,  1911. 
For  a  valuable  consideration,  we,  Fred 
Fischer,  Sr.,  Fred  Fischer,  Jr.,  Henry  Fischer 
and  Waltfer  Fischer,  all  of  Marcola,  State  of 
Oregon,  and  Carl  E.  Fischer,  of  Springfield, 
State  of  Oregon,  do  hereby  jointly  and  sev- 
erally guarantee  the  prompt  and  punctual  pay- 


278  TIMBER  BONDS 

ineut  of  the  within  bond  and  of  the  interest 
coupons  thereto  attached,  whenever  they  may 
become  due  or  payable,  whether  by  lapse  or  ex- 
piration of  time,  or  by  declaration  of  prior  ma- 
turity under  the  provisions  of  the  mortgage  or 
trust  deed  given  to  secure  their  payment,  or 
by  the  terms  of  any  extension  of  the  time  of 
payment  in  whole  or  in  part;  authorizing  the 
maker,  its  successors  or  assigns,  without  notice 
to  us  or  to  any  one  of  us,  to  obtain  any  exten- 
sion or  extensions  which  it  may  see  fit ;  and  we 
also  agree  that  in  case  of  nonpayment  thereof 
whenever  the  same  may  so  become  due,  suit 
may  be  brought  against  us  or  any  one  or  more 
of  us,  whether  or  not  suit  has  been  brought 
against  the  maker,  and  that  in  any  such  suit  the 
maker  may  be  joined  with  us  or  any  one  or 
more  of  us,  at  the  option  of  the  plaintiff  in  such 
suit. 


AxD  WHEREAS,  all  tMugs  ucccssary  to  make 
said  bonds  when  executed  by  the  Company  and 
certified  by  the  Corporation  Trustee,  a  valid, 
binding,  legal,  negotiable  obligation  of  the  Com- 
pany, and  this  instrument  a  valid  mortgage  to 
scc-T:Vc.  V.'.e  payment  thereof,  have  been  done, 
liappcned  and  been  performed: — 


TRUST  DEEDS  279 

Now,  THEREFORE,  for  and  in  consideration  of 
One  Dollar  in  hand  paid  by  the  parties  of  the 
second  part  to  the  party  of  the  first  part,  the 
receipt  whereof  is  hereby  acknowledged,  and 
the  other  considerations  herein  expressed,  and 
in  order  to  secure  the  payment  of  the  principal 
and  interest  of  all  of  said  bonds  above  de- 
scribed, at  any  time  outstanding,  according  to 
their  tenor  and  effect,  and  to  secure  the  per- 
formance of  all  the  covenants  and  conditions 
herein  contained,  and  to  declare  the  terms  and 
conditions  upon  which  said  bonds  are  issued  or 
to  be  issued,  and  for  and  in  consideration  of  the 
acceptance  or  purchase  of  said  bonds  or  any 
of  them,  by  whomsoever  may  be  or  become  the 
holders  thereof,  the  said  Fischer  Lumber  Co. 
has  executed  and  delivered  these  presents,  and 
hereby  grants,  sells,  bargains,  aliens,  releases, 
conveys,  assigns,  warrants,  transfers,  and  mort- 
gages unto  said  Union  Trust  Company  and 
John  K.  Lyon,  Trustees,  their  successors  and 
assigns,  with  full  subrogation  to  any  and  all 
warranties  or  rights  in  action  against  previous 
vendors  or  holders  or  other  persons,  the  fol- 
lowing described  timber,  lands,  logging  rights, 
logging  plant,  logging  apparatus,  planing  mill 
with  its  plant,  equipment  and  appurtenances, 
saw-mill  with  its  plant,  equipment  and  appur- 
tenances, and  other  property,  lying,  being  and 
situate  in  Lane  and  Linn  Counties,  State  of 
Oregon,  to  wit:  « 


280  TIMBER  BONDS 

Lots  One  (1)  and  Two  (2)  of  Section 

Four (4) 

being  the  North  half  of  the  North- 
east quarter  of  said  Section  Four  (4). 
South  half  of  Northeast  quarter  of  Sec- 
tion Four   (4) 

Southeast  quarter  of  Section  Four (4) 

Lots  Four  (4),  Five  (5),  Six  (6),  and 

Seven  (7)  of  Section  Six (6) 

being  the  "West  half  of  the  West  half 
of  said  Section  Six  (6). 
South  half  of  Northeast  quarter  of  Sec- 
tion Six (6) 

North  half  of  Southeast  quarter  of  Sec- 
tion Six (6) 

West  half  of  Section  Eight (8) 

Southeast  quarter  of  Section  Eight (8) 

all  in  Township  Sixteen  (16)  South  of  Range 
Two  (2)  West  of  the  Willamette  Meridian. 

Also  the  following  land,  to  wit,  Lot  One  (1) 
of  Section  Twenty-four  (24)  in  Township  Six- 
teen (16)  South,  Range  Two  (2)  West  of  the 
Willamette  Meridian,  including  the  planing 
mill  plant  thereon,  known  as  the  Fischer  Plan- 
ing Mill,  together  with  its  equipment  and  ap- 
purtenances ; 

Also  the  Northeast  quarter  of  the  Southeast 
quarter  of  Section  Ten  (10)  in  said  Township 
Sixteen  (16)  South,  Range  Two  (2)  West  of 
the  Willamette  Meridian,  including  the  saw- 
mill plant  thereon,  laiown  as  the  Fischer  Saw 


TRUST  DEEDS  281 

Mill,  together  with  its  equipment  and  appurte- 
nances ; 

Also  the  flumes  running  across  Sections 
Eleven  (11),  Thirteen  (13)  and  Fourteen  (14) 
in  said  Township  Sixteen  (16)  South  of  Eange 
Two  (2)  West  of  the  Willamette  Meridian,  to- 
gether with  all  logging  rights,  rights  of  way 
and  other  rights  which  the  Company  has  in  or 
to  any  portion  of  said  Sections  11,  13  and  14, 
including  the  right  to  perpetually  maintain  and 
operate  said  flumes. 

All  of  said  property  lying,  being  and  situate 
in  the  Counties  of  Lane  and  Linn,  State  of 
Oregon,  and  the  same  being  hereby  conveyed 
whether  the  same  or  any  portion  thereof  lies  in 
either  one  or  both  of  said  Counties. 

Also  all  dry  kilns,  dry  sheds,  boilers,  engines, 
donkey  engines,  railroad  track,  cars,  locomo- 
tives, electric  light  plant,  power  houses,  ma- 
chine shops,  water  works,  and  all  other  build- 
ings of  every  kind,  and  all  machinery  and  equip- 
ment now  or  hereafter  used  in  connection  with 
said  saw-mill  plant,  logging  plant,  or  said  plan- 
ing mill  plant  above  described,  together  with 
all  betterments,  additions  and  improvements  of 
every  nature  and  description  hereafter  placed 
upon  said  premises,  and  used  or  intended  to  be 
used  in  connection  therewith. 

To  HAVE  AND  TO  HOLD  all  and  singular  the 
above  described  property  and  rights,  together 
with  all  the  rights,  title  and  interest  thereunto 
belonging,  and  all  the  privileges  and  appurte- 


282  TIMBER  BONDS 

nances  tliereunto  appertaining,  and  together 
with  all  other  property  which  by  the  terms 
hereof  may  become  subject  to  this  instrument, 
unto  the  said  Union  Trust  Company  and  the 
said  John  K.  Lyon,  Trustees,  their  successors 
in  trust,  and  their  assigns  in  fee  simple  for- 
ever. And  the  party  of  the  jfirst  part  covenants 
that  it  is  seized  and  possessed  of  the  property 
above  described  and  conveyed  in  fee  simple; 
that  the  same  is  unencumbered  and  that  it  has 
a  good  right  to  convey  it;  and  it  warrants  to 
forever  defend  the  title  thereto  unto  the  said 
Trustees,  their  successors  and  assigns,  against 
the  lawful  claims  of  all  persons  whomsoever — 
In  trust  nevertheless  for  the  purpose  of  se- 
curing the  prompt  and  punctual  payment  of 
all  and  every  of  the  bonds  above  described  and 
of  the  interest  coupons  thereto  attached,  with- 
out preference  or  priority  of  one  bond  over 
another,  or  of  bonds  over  coupons,  or  of  cou- 
pons over  bonds,  with  the  same  effect  as  if  all 
of  said  bonds  matured  upon  the  same  date,  and 
regardless  of  the  date  or  time  of  the  issue  or 
negotiation  thereof;  and  subject  to  the  follow- 
ing provisions,  restrictions  and  conditions, 
to  wit: 

ARTICLE  I. 

All  of  the  bonds  issued  and  certified  here- 
under shall  stand  upon  equality  without  regard 
to  date  of  issue,  certification  or  delivery.  Only 
such  bonds  as  shall  bear  thereon  endorsed  the 


TRUST   DEEDS  283 

certificate  of  the  Corporatiou  Trustee  or  its 
successor  hereunder,  by  it  duly  executed,  shall 
be  valid  or  obligatory  for  any  purpose  or  shall 
be  secured  bv  this  instrument  or  entitled  to  any 
lien  or  benefit  hereunder,  and  every  such  cer- 
tificate of  said  Corporation  Trustee  upon  any 
bond  executed  in  behalf  of  the  Company  shall 
be  the  only  and  conclusive  evidence  that  the 
bond  so  certified  has  been  duly  issued  here- 
under and  is  entitled  to  the  benefit  of  the  trust 
herebv  created,  and  no  holder  of  any  bond 
issued  hereunder  which  shall  be  so  certified  by 
said  Corporation  Trustee  shall  be  under  a  duty 
to  ascertain  whether  the  same  shall  have  been 
duly  issued,  certified  and  delivered,  according 
to  the  pro\isions  hereof. 

The  entire  issue  of  said  bonds  shall  be  ex- 
ecuted by  the  Company  and  at  once  certified 
and  delivered  by  said  Corporation  Trustee  to 
the  President  of  the  Company  or  to  such  per- 
son or  persons  as  the  Board  of  Directors  of  the 
Company  by  its  resolution  may  designate. 

Upon  certifying  or  delivering  any  bond  un- 
der this  mortgage  or  deed  of  trust  all  coupons 
thereon  then  matured  shall  be  detached  and 
cancelled  by  the  Corporation  Trustee  and  de- 
livered to  the  Company. 

In  case  the  officers  who  shall  have  signed  and 
sealed  any  of  the  bonds  aforesaid  shall  cease  to 
be  such  officers  of  the  Company  before  the 
bonds  so  signed  and  sealed  shall  have  been  ac- 
tually certified  and  delivered  by  the  Corpora- 


284  TIMBER  BONDS 

tion  Trustee,  or  issued,  such  bonds  may  never- 
theless be  issued,  certified  and  delivered  as 
though  the  persons  who  had  signed  and  sealed 
such  bonds  had  not  ceased  to  be  officers  of  said 
Company. 

Interest  coupons  shall  be  authenticated  by 
the  signature  of  the  present  Treasurer  of  the 
Company,  and  the  Company  may  adopt  and 
use  said  coupons,  notwithstanding  the  fact  that 
the  present  Treasurer  may  have  ceased  to  hold 
such  office  at  the  time  when  said  bonds  or  some 
portion  thereof,  shall  l)e  actually  certified  and 
delivered. 

The  Trustees  shall  not  be  bound  to  see  to 
the  application,  use  or  disposition  of  any  of 
the  bonds  secured  hereby,  or  of  the  proceeds 
thereof. 

ARTICLE  II. 

In  case  any  bond  issued  under  this  instru- 
ment or  the  coupons  thereto  appertaining,  shall 
become  mutilated,  lost  or  destroyed,  the  Com- 
pany in  its  discretion  may  issue  and  thereupon 
the  Corporation  Trustee  shall  certify  and  de- 
liver a  new  bond  of  like  date,  tenor  and  amount, 
bearing  the  same  number  as  the  one  mutilated, 
lost  or  destroyed,  in  exchange  for  and  in  place 
of  and  upon  the  cancellation  of  tlie  mutilated 
l)ond  or  coupons,  or  in  lieu  of  and  substitution 
for  the  same,  if  lost  or  destroyed.  In  such  case 
the  applicant  for  such  new  or  substituted  bond 
shall  bear  the  expense  of  furnishing  the  same. 


TRUST  DEEDS  285 

The  Company  shall  not  be  required  to  issue 
nor  the  Corporation  Trustee  to  certify  a  new 
bond  in  lieu  of  any  bond  alleged  to  have  been 
lost  or  destroyed  unless  the  applicant  for  such 
new  bond  shall  first  furnish  evidence  of  such 
loss  or  destruction,  and  indemnity  against  its 
subsequent  presentation  as  an  obligation  of  the 
Company,  which  evidence  and  indemnity  shall 
be  satisfactory  to  both  the  Company  and  the 
Corporation  Trustee,  in  their  discretion. 

ARTICLE  III. 

Any  bond  secured  hereby  shall  pass  by  de- 
livery unless  registered,  but  it  may  be  reg- 
istered as  to  principal  in  the  holder's  name  on 
the  books  of  the  Union  Trust  Company,  Reg- 
istrar, at  its  office  in  the  City  of  Chicago,  Illi- 
nois, such  registry  being  noted  on  the  bond  by 
said  Registrar,  after  which  only  such  registered 
holder,  or  the  legal  representative  of  such 
holder,  shall  be  entitled  to  receive  the  princi- 
pal thereof;  and  no  transfer  shall  be  valid  un- 
less made  on  said  Registrar's  books  by  the  reg- 
istered holder  of  the  bond  in  person  or  by  the 
legal  representative  of  such  holder  and  simi- 
larly noted  on  the  bond;  but  the  bond  may  be 
discharged  from  registry  by  registration  to 
bearer  after  which  it  shall  be  transferable  bv 

* 

deliver^'.    It  may  be  registered  again,  however, 
in  the  manner  above  provided. 

The  registry  of  any  bond  shall  not  impair 


286  TIMBER  BONDS 

the  negotiability  of  the  coupons,  but  the  same 
shall  continue  to  be  transferable  by  delivery 
notwithstanding  such  registration. 

ABTICLE  IV. 

Fischer  Lumber  Co.  agrees  and  covenants 
that  it  will  duly  and  punctually  pay,  or  cause 
to  be  paid,  to  every  holder  of  any  bond  issued 
hereunder  and  secured  hereby  the  principal  and 
interest  accrued  thereon,  all  in  gold  coin  of  the 
United  States  of  America  of  the  standard  of 
weight  and  fineness  existing  on  the  second  day 
of  January,  1911,  notwithstanding  any  law 
which  may  now  or  herafter  make  anything  else 
a  legal  tender  in  payment  of  debts,  at  the  dates 
and  places,  and  in  the  manner  mentioned  in 
said  bonds  or  in  the  coupons  thereto  appertain- 
ing, according  to  the  true  intent  and  meaning 
thereof,  and  without  deduction  from  either  the 
principal  or  interest  for  any  tax,  or  taxes,  or 
assessments,  or  other  governmental  charges 
which  may  be  imposed  thereon,  or  which  the 
Company  may  be  required  or  permitted  to  pay 
or  to  deduct  or  retain  therefrom  under  or  by 
reason  of  any  present  or  future  law  of  the 
United  States,  or  of  any  State,  County  or  Mu- 
nicipality thereunder. 

However,  the  interest  on  said  bonds  shall  be 
payable  only  upon  the  presentation  and  sur- 
render of  the  respective  coupons  annexed  to 
said  bonds,  as  such  coupons  respectively  ma- 


TRUST  DEEDS  287 

ture  aud  when  and  as  paid  all  the  coupons  shall 
forthwith  be  cancelled  and  delivered  to  the 
Company. 

Said  Company  further  covenants  that  in  case 
of  its  failure  to  promptly  and  punctually  pay 
the  said  bonds  and  interest  coupons,  or  any  of 
them,  whenever  they  may  become  due  and  pay- 
able, whether  by  the  lapse  of  time  or  otherwise, 
it  will  pay,  and  it  hereby  promises  and  agrees 
to  pay  in  addition  to  the  costs  and  disburse- 
ments otherwise  allowed  by  statute  or  other 
law,  such  additional  sum  or  sums  in  like  gold 
coin  as  may  be  adjudged  reasonable  for  attor- 
nevs'  fees  to  be  allowed  in  anv  suit  or  action 
that  may  be  instituted  to  collect  the  same. 

And  the  Company  agrees  promptly,  and  in 
time  to  prevent  any  sale  or  forfeiture  of  the 
mortgaged  premises  or  any  part  of  the  same 
on  account  thereof,  to  pay,  or  cause  to  be  paid, 
all  taxes,  assessments  and  governmental 
charges  which  shall  from  time  to  time  be  legally 
imposed,  assessed  or  levied,  upon  or  against 
the  property  hereby  conveyed,  or  upon  any  part 
thereof,  or  upon  the  profits  or  income  thereof; 
and  to  promptly  pay  all  taxes  or  governmental 
charges  that  may  be  levied  or  assessed  on  this 
mortgage  and  on  the  debt  secured  hereby  be- 
fore said  taxes  become  delinquent;  and  to  pay 
or  cause  to  be  paid  any  judgment  or  other  en- 
cumbrance, the  lien  whereof  might  be  held  su- 
perior to  the  lien  of  these  presents,  upon  the 
property  hereby  conveyed  or  upon  any  part 


288  ■  TIMBER  BONDS 

thereof,  so  that  the  priority  of  these  presents 
shall  at  all  times  be  fully  maintained  and  pre- 
seiT-ed;  provided,  however,  that  the  Company 
may,  with  the  consent  of  the  Corporation  Trus- 
tee thereto  first  had  and  obtained  in  writing, 
resist  in  any  legal  way  the  pajmient  of  any  tax, 
assessment  or  charge  upon  said  property  hereby 
conveyed,  or  any  part  thereof,  which  the  Com- 
pany may  deem  unjust,  illegal  or  unauthorized. 
And  the  Company  agrees  to  do  on  demand  of 
the  said  Trustee,  or  its  successors,  all  acts 
necessary  or  proper  to  keep  valid  the  lien 
hereby  created  or  intended  to  be  created;  and 
at  anv  future  time  and  as  often  as  it  mav  be 
necessary  to  execute  or  cause  to  be  executed  on 
demand  of  said  Trustee,  or  its  successor  or  suc- 
cessors, all  such  other  and  additional  deeds, 
mortgages,  or  other  instruments  in  writing,  in 
due  form  and  effect,  as  may  be  proper  to  the 
better  carrying  out  of  the  true  intent  and  mean- 
ing of  these  presents. 

And  the  Company  further  covenants  and 
agrees  that  it  will  not  cut  nor  permit  to  be  cut 
any  timber  from  the  premises  hereunder  mort- 
gaged, nor  any  timber  hereunder  mortgaged, 
nor  extract  anything  from  or  deaden  the  said 
timber,  or  any  portion  thereof,  nor  permit  the 
same  to  be  done,  nor  permit  any  waste  or  other 
change  in  the  property  hereby  mortgaged,  or 
any  portion  thereof,  except  as  is  herein  other- 
wise expressly  provided,  but  that  it  will  dili- 
gently preserve  and  protect  the  same. 


TRUST   DEEDS  289 

111  case  the  Company  shall  fail  to  promptly 
pay  or  cause  to  be  paid  anj^  tax,  assessment  or 
other  charge  as  provided  for  herein,  either  of 
the  Trustees  may  pay  the  same  (but  shall  not 
be  under  any  obligation  whatsoever  so  to  do), 
in  which  event  such  Trustee  shall  be  subro- 
gated, either  with  or  without  an  act,  writing  or 
other  instrument  to  that  effect,  to  the  rights  and 
demands  of  the  state,  county,  city,  town  or  other 
municipality,  as  the  case  may  be;  and  in  addi- 
tion thereto  the  amount  thus  expended  together 
with  interest  thereon  at  the  rate  of  six  per 
centum  per  annum,  shall  be  a  charge  on  the 
property  hereby  conveyed  prior  to  the  lien  of 
the  bonds  hereby  secured. 

The  Company  covenants  that  its  mill  plants, 
equipment  and  appurtenances,  and  its  flumes, 
logging  apparatus  and  logging  plant  will  be 
kept  in  repair  and  maintained  in  good  working 
order  and  condition,  and  if  worn  out  or  injured 
will  be  replaced  by  other  property  suitable  to 
the  business  for  which  it  is  now  used,  and  of  at 
least  equal  value,  and  that  such  mill  plants, 
equipment  and  appurtenances,  and  such  flumes, 
logging  apparatus  and  logging  plant  shall  not 
be  removed  from  the  mortgaged  premises  with- 
out the  consent  of  the  Trustees  hereunder. 


AETICLE  V. 

The  Company  agrees  that  it  will,  at  all  times, 
during  the  existence  of  any  of  the  indebtedness 


290  TIMBER  BONDS 

secured  hereby,  keep  or  cause  to  be  kept  in- 
sured against  loss  by  fire  or  cyclone,  all  of  the 
buildings  now  on  any  portion  of  the  property 
hereby  mortgaged  or  which  may  hereafter  be 
erected  thereon,  and  all  the  machinery,  equip- 
ment and  apparatus  used  or  pro\dded  for  use  in 
connection  with  said  mill  plants  and  equipment 
that  are  usually  insured  by  companieu  or  per- 
sons engaged  in  like  business,  and  in  the  same 
manner,  and  to  the  same  extent  (but  in  an 
amount  not  less  than  Eight  Thousand  Dollars), 
and  shall  cause  such  insurance  to  be  made  pay- 
able in  case  of  loss  to  the  Trustees  hereunder 
or  their  successors,  by  proper  stipulation  in  the 
face  of  the  policies  therefor. 

In  case  of  loss  or  damage  to  any  property 
covered  by  such  insurance  policies  the  Trustees 
may  allow  the  amount  of  the  insurance  money 
received  from  said  policies  on  account  of  such 
loss  to  be  applied  toward  the  replacement  of, 
or  addition  to  the  property  destroyed  or  dam- 
aged, if  the  Company  shall  in  writing  so  re- 
quest. In  such  case  the  Trustees  shall  from 
time  to  time  pay  to  the  Company  any  or  all  of 
the  proceeds  of  such  insurance  money  so  col- 
lected or  received;  but  no  such  payment  shall 
be  made  until  and  unless  the  Trustees  shall  first 
be  furnished  with  a  statement  or  statements 
verified  by  the  affida^dts  of  the  President  or 
Vice-President  of  the  Company  showing  that 
the  Company  has  theretofore  made  actual  ex- 
penditures to  an  amount  equal  to  or  greater 


TRUST  DEEDS  291 

than  the  amount  of  insurance  money  sought  to 
be  thus  obtained  from  the  Trustees,  in  or  about 
the  repair  or  the  replacement  of  the  property 
damaged  or  destroyed  for  or  on  account  of 
which  such  insurance  money  was  collected ;  and 
all  such  repairs  or  replacements  shall  be  and 
become  subject  to  the  lien  of  this  instrument  in 
like  manner  and  to  the  same  extent  as  was  the 
property  damaged  or  destroyed.  The  Trustees 
shall  not  be  compelled  to  act  upon  such  affida- 
vits, but  should  they  deem  proper  they  may 
before  making  such  payments  of  insurance 
money  make  or  cause  to  be  made  such  further 
investigations  with  reference  to  such  expendi- 
tures, repairs  or  replacements,  as  they  see  fit. 

But  if  within  ninety  days  from  the  time  of 
the  collection  of  the  proceeds  of  any  such  in- 
surance policy  the  Company  shall  not  in  writing- 
request  the  Trustees  to  hold  such  proceeds  for 
the  purpose  of  applying  the  same  on  such  re- 
pairs or  replacements,  then  the  said  sums  so 
collected  shall  be  credited  to  and  become  a  part 
of  the  fund  held  by  the  Corporation  Trustee 
for  the  purpose  of  retiring  bonds  hereby  se- 
cured, as  is  provided  in  Article  VII  and  other 
Articles  hereof. 

Likewise  shall  all  surplus  moneys  be  so  ap- 
plied in  case  the  cost  of  repairs  or  replace- 
ments shall  not  equal  the  total  amount  of  the 
proceeds  collected  from  such  insurance  poli- 
cies. 

In  case  of  loss  covered  by  any  policy  of  in- 


292  TIMBER  BONDS 

surance,  any  appraisement  or  adjustment  of 
such  loss,  and  settlement  and  payment  of  in- 
demnity therefor,  which  may  be  agreed  upon 
between  the  Company  and  any  insurance  com- 
pany, may  be  consented  to  and  accepted  by  the 
Trustees. 

The  Trustees  shall  be  in  no  way  liable  or  re- 
sponsible for  a  failure  to  collect  any  insurance 
money  that  may  become  due  them  under  the 
provisions  hereof,  or  of  the  policies  above  re- 
ferred to,  but  only  for  such  amounts  as  may 
come  into  their  hands  as  the  proceeds  of  such 
policies. 

AETICLE  VI. 

In  order  to  prevent  any  accumulation  of 
bonds  or  coupons  after  their  maturity,  the 
Company  covenants  and  agrees  that  it  will  not 
directly  or  indirectly  extend  or  assent  to  the  ex- 
tension of  the  time  for  payment  of  any  of  the 
bonds  or  of  any  coupons  of  any  of  the  bonds 
secured  hereby,  by  purchase  or  funding  of  such 
bonds  or  coupons  or  by  any  other  arrangement 
unless  and  except  such  extension  shall  be  sub- 
ject to  the  terms  of  this  article.  In  case  the 
time  for  payment  of  any  such  bond  or  coupon 
shall  be  so  extended,  whether  or  not  such  ex- 
tension be  with  or  by  the  consent  of  the  Com- 
pany, such  bond  or  coupon  shall  not  be  entitled, 
in  case  of  any  default  hereunder,  to  the  benefit 
or  security  of  this  mortgage,  except  subject  to 
the  prior  payment  in  full  of  the  principal  of 


TRUST  DEEDS  293 

all  bonds  issued  hereunder  then  outstanding, 
and  of  all  matured  coupons  and  accrued  inter- 
est thereon,  and  of  all  other  accrued  interest  on 
such  bonds  the  payment  of  which  has  not  been 
so  extended. 

ARTICLE  VII. 

The  number  first  having  been  selected  by  lot 
by  the  Corporation  Trustee,  any  outstanding 
bond  issued  hereunder  may  be  redeemed  and 
paid  by  the  Company  at  the  place  of  payment 
of  said  bonds  on  any  interest  payment  date, 
upon  payment  of  the  principal  of  said  bond 
and  interest  due  thereon  at  the  date  of  such  re- 
demption, together  with  a  premium  of  three 
(3)  per  centum  on  the  principal  thereof.  Such 
selection  shall  in  every  case  be  made  from  the 
bonds  first  maturing,  no  bond  being  subject  to 
selection  for  redemption  until  all  bonds  of  prior 
maturities  have  either  been  paid  or  selected 
for  redemption.  In  case  of  an  election  to  re- 
deem any  of  the  bonds  issued  hereunder  before 
maturity  and  a  selection  pursuant  to  such  elec- 
tion either  the  Company  or  the  Corporation 
Trustee  shall  publish  a  notice  of  such  election 
to  redeem  and  the  selection  thereunder  once  a 
week  for  four  successive  weeks  (the  first  of 
such  publications  to  be  not  less  than  ninety 
days  previous  to  the  date  of  redemption)  in 
some  newspaper  of  general  circulation  pub- 
lished in  the  City  of  Portland,  State  of  Oregon, 
and  in  a  similar  newspaper  published  in  the 


294  TIMBER  BONDS 

City  of  Chicago,  State  of  Illinois,  which  notice 
shall  state  the  numbers  of  the  bonds  selected  as 
above  to  be  redeemed,  and  the  date  when  the 
bonds  so  selected  shall  be  due  and  payable  under 
such  redemption.  All  bonds  so  designated  for 
redemption  shall  become  due  and  payable  on 
the  date  given  in  such  published  notice,  and 
shall  from  such  date  cease  to  draw  interest, 
provided  that  at  or  prior  to  such  date  there 
shall  have  been  deposited  with  the  Corporation 
Trustee  the  proper  amount  of  money  for  the 
redemption  of  said  bonds  so  designated  for  re- 
demption. Upon  the  deposit  with  the  Corpora- 
tion Trustee  of  the  proper  amount  of  money 
for  the  redemption  of  any  bond  or  bonds  so 
designated  the  Company  and  the  Trustees  may 
be  privileged  to  consider  such  bond  or  bonds 
as  paid  and  cancelled,  and  the  Company  shall 
be  under  no  further  obligation  to  the  holder 
or  holders  of  such  bond  or  bonds ;  nor  shall  the 
Trustees  be  further  liable  or  under  obligation 
to  such  holder  or  holders  except  for  the  moneys 
deposited  in  redemption  of  such  bonds,  to  be 
paid  without  interest  upon  their  surrender. 

ARTICLE  VIII. 

Subject  to  the  right  of  suspension  or  rev- 
ocation as  provided  in  Article  XI  hereof  and 
so  long  as  the  Conpany  shall  not  be  in  default 
in  the  pajnuent  of  any  of  the  bonds  or  interest 
coupons  secured  hereby,  or  in  the  payment  of 


TRUST  DEEDS  295 

taxes  or  other  governmental  assessments  or 
charges  as  provided  in  this  mortgage,  or  in  the 
performance  of  any  of  the  other  covenants 
herein  contained  on  its  part  to  be  performed, 
the  Trustees  shall  and  are  hereby  authorized 
to  release  unto  the  Company  and  to  permit  the 
Company  to  cut  and  remove  free  from  the  lien 
of  this  mortgage,  or  deed  of  trust,  any  of  the 
timber  conveyed  hereby,  or  the  timber  on  any 
or  all  of  the  lands  conveyed  hereby,  which  the 
Company  may  'select,  when  the  Company  shall 
have  first  paid  to  the  Corporation  Trustee  One 
and  Fifty-Hundredths  (1  50-100)  Dollars  per 
thousand  feet  on  the  estimated  stumpage  for 
the  timber  on  each  description  or  group  of  de- 
scriptions which  the  Company  then  desires  the 
right  to  cut,  as  the  estimated  stumpage  thereon 
is  shown  on  a  list  called  ''Estimated  Stumpage 
List,"  signed  in  triplicate  by  the  Company,  by 
the  Corporation  Trustee  and  by  Lyon,  Gary  & 
Company,  an  Illinois  corporation,  and  one 
original  of  which  list  is  deposited  with  each  of 
the  signatories  thereto.  Consideration  for  the 
privilege  of  obtaining  such  releases  may  be 
given  by  the  Company  in  any  of  the  following 
three  ways: 

(a)  By  payment  in  cash. 

(b)  By  delivery  to  the  Trustees  of  any 
of  the  bonds  hereby  secured  and  then  out- 
standing, which  it  may  have  acquired;  in 
which  case,  for  the  purpose  of  obtaining  re- 
lease the  amount  of  the  principal  of  such 


296  TIMBER  BONDS 

bonds  SO  delivered  sliall  be  treated  the  same 
as  if  a  like  amount  had  been  paid  to  the  Trus- 
tees in  cash. 

(c)  By  the  payment  of  any  of  the  bonds 
secured  hereby — treating  only  the  amount  of 
principal  paid  as  a  consideration  for  re- 
leases. 

In  the  event  that  the  Company  shall  acquire 
and  deliver  bonds  to  the  Trustees,  as  provided 
in  paragraph  (b)  above,  the  Trustees  shall  can- 
cel the  said  bonds  so  delivered  and  forming  the 
consideration  or  part  of  the  consideration  for 
such  releases  and  also  the  coupons  attached 
thereto. 

The  Trustees  shall  keep  a  list  of  the  numbers 
of  all  bonds  so  used  for  the  purpose  of  securing 
releases  of  portions  of  the  timber  and  shall 
indicate  on  each  such  bond  that  it  has  been  so 
used — together  with  the  date  of  such  use. 

All  money  received  by  the  Corporation  Trus- 
tee under  this  Article  shall  be  used  for  the  re- 
tirement of  bonds  secured  hereby  as  provided 
in  Article  VII  hereof. 

The  Company  may  enter  upon  any  land  from 
which  the  timber  has  been  so  released  and  may 
conduct  logging  operations  thereon  as  it  may 
desire ;  and  the  Company  may  also,  at  its  pleas- 
ure, remove  any  logging  railroad  or  other  prop- 
erty which  it  may  place  on  such  land. 

The  Company  covenants  that  it  will  keep 
proper  books  of  record  and  account  showing 
full,  true  and  perfect  entries  of  all  dealings 


TRUST  DEEDS  297 

or  transactions  of  or  in  relation  to  the  plants, 
properties,  business  and  affairs  of  the  Com- 
pany, and  which  shall  at  all  times  be  open  to 
the  inspection  of  the  Trustees  or  either  of 
them,  and  of  Lyon,  Gary  &  Company,  or  of 
their  respective  successors  hereunder;  and 
that  whenever  requested  either  by  the  Trus- 
tees or  by  Lyon,  Gary  &  Company  or  their  re- 
spective successors  the  Company  shall  and 
will  furnish  complete  statements  showing  its 
financial  condition,  together  with  such  other 
information  bearing  on  the  security  of  the 
bonds  as  may  be  requested. 

ARTICLE  IX. 

In  case  before  the  payment  in  full  of  all  the 
bonds  hereby  secured  with  interest  thereon, 
any  timber  hereby  mortgaged  or  the  timber  on 
any  portion  of  the  premises  hereby  mortgaged 
(except  such  as  may  have  been  theretofore  re- 
leased under  the  provisions  of  this  instrument) 
shall  be  injured  or  damaged  by  the  action  of 
fire,  or  by  wind  or  the  other  elements  to  an 
extent  sufficient  in  the  opinion  of  the  Trustees 
or  of  Lyon,  Gary  &  Company,  to  appreciably 
affect  the  value  of  the  same  as  security  for 
the  payment  of  the  bonds  and  coupons  then 
outstanding,  the  Company  shall  within  sixty 
days  after  the  extent  of  such  loss  shall  be  de- 
termined, as  in  this  Article  hereinafter  pro- 
vided, pay  to  the  Corporation  Trustee  for  the 


298  TIMBER  BONDS 

benefit  of  the  bondholders  the  sum  of  Seventy- 
five  (75)  Cents  per  thousand  feet  stumpage  on 
the  timber  so  injured  or  damaged,  the  land 
descriptions  on  which  the  timber  has  been 
injured  or  damaged  being  ascertained  by  in- 
vestigation under  direction  of  the  Trustees, 
and  the  amount  of  timber  thereon  so  damaged, 
on  which  the  payments  of  Seventy-five  (75) 
Cents  per  thousand  feet  shall  be  made  as  above 
expressed,  being  determined  by  the  estimates 
to  be  made  by  a  cruiser  to  be  selected  by  the 
Trustees  with  the  written  approval  of  Lyon, 
Gary  &  Company ;  the  expenses  of  ascertaining 
such  land  descriptions  and  the  amount  of  tim- 
ber thereon  so  damaged  to  be  paid  by  the  Com- 
pany and  to  be  a  charge  against  the  property 
herein  conveyed  and  secured  by  this  mortgage. 

The  salvage  of  any  timber  so  injured  or 
damaged,  and  on  account  of  which  damage  pay- 
ments are  made  as  above  provided,  shall  re- 
main subject  to  the  terms  of  this  instrument, 
notwithstanding  such  payments ;  but  should  the 
Company  desire  to  cut  and  remove  such  tim- 
ber, free  from  the  lien  or  encumbrance  of  this 
instrument,  it  shall  have  the  right  to  do  so 
upon  paying  to  the  Corporation  Trustee  for  the 
benefit  of  the  bondholders,  the  additional  sum 
of  Seventy-five  (75)  Cents  per  thousand  feet 
stumpage  for  any  such  damaged  timber. 

Should  the  Company  not  take  and  pay  for 
the  salvage  of  such  damaged  timber  within  one 
year  from  the  time  that  it  shall  have  been  dam- 


TRUST  DEEDS  299 

aged,  the  Trustees  hereunder  are  authorized 
to  dispose  of  the  same  at  such  price  and  on 
such  terms  as  they  may  see  fit,  the  proceeds 
thereof,  less  the  expense  connected  therewith, 
to  be  held  for  the  benefit  of  the  bondholders  as 
is  provided  in  Article  VIII  hereof. 

ARTICLE  X. 

All  sums  of  money  paid  to  the  Trustees  by 
the  Company  for  the  release  of  any  portion  of 
the  timber  hereby  mortgaged,  in  accordance 
with  any  Article  hereof,  and  all  other  sums 
which  may  come  into  the  hands  of  the  Trus- 
tees for  the  benefit  of  the  holders  of  the  bonds 
issued  hereunder,  shall  be  applied  by  the  Trus- 
tees from  time  to  time  to  the  purchase  of  out- 
standing bonds  issued  hereunder  at  such  prices 
as  may  be  agreed  upon  by  the  Company  and 
the  Trustees.  If  none  of  the  bonds  secured 
hereby  can  be  so  purchased,  the  Trustees  in  the 
manner  provided  in  Article  VII  hereof  shall 
by  lot  select  bonds  to  be  redeemed  to  an  amount 
sufficient  to  approximately  exhaust  the  funds  so 
held  by  them ;  after  which  the  bonds  so  selected 
shall  in  all  things  be  subject  to  the  provisions 
of  Article  VII  hereof  and  redeemalble  in  the 
manner  therein  provided;  such  redemption  to 
be  made  on  the  first  interest  payment  date 
occurring  ninety  days  or  more  after  the  receipt 
of  such  funds  by  the  Trustees. 

No  bond  which  may  be  paid,  bought  or  re- 


300  TIMBER  BONDS 

deemed  under  this  or  any  other  Article  hereof, 
shall  be  reissued,  but  the  same  shall  be  can- 
celled by  the  Trustees  and  delivered  to  the 
Company  for  preservation. 

AETICLE  XI. 

While  the  Company  shall  not  be  in  default  in 
the  performance  of  any  of  the  covenants  in 
this  instrument  contained  it  may  from  time  to 
time,  subject  to  the  conditions  hereinafter 
stated,  sell,  free  from  the  lien  of  this  instru- 
ment, the  timber  on  all  or  any  part  of  the  prop- 
erty by  it  mortgaged  hereunder,  in  parcels  of 
forty  acres  or  more,  upon  the  payment  in  cash 
of  such  sum  or  sums  of  money  as  the  Company, 
the  Trustees,  and  Lyon,  Gary  &  Company  may 
agree  upon,  which  shall  not  be  less  than  One 
and  Fifty  One-hundredths  (150-100)  Dollars 
per  thousand  feet  stumpage  based  upon  the 
estimates  of  the  stumpage  on  said  lands  as 
shown  in  the  Estimated  Stumpage  List  re- 
ferred to  above. 

And  with  the  written  consent  of  the  Trus- 
tees and  of  said  Lyon,  Gary  &  Company,  the 
Company  may  sell  free  from  the  lien  hereof,  all 
or  any  portion  of  the  property  hereunder  mort- 
gaged (excepting  the  mill  plants)  at  such  price 
and  on  such  terms  as  may  be  approved  in  writ- 
ing by  the  Company,  the  Trustees  and  Lyon, 
Gary  &  Company. 

Either  the  Trustees  or  Lyon,  Gary  &  Com- 


TRUST  DEEDS  301 

pany  may,  in  their  discretion,  cause  such  in- 
vestigation to  be  made  of  the  desirability  of 
permitting  or  approving  of  any  proposed  sale 
or  sales  of  the  property  or  any  part  thereof,  as 
they  may  see  fit,  and  the  expense  of  such  in- 
vestigation shall  be  borne  by  the  Company.  The 
Trustees  shall  execute  such  instruments  as  may 
be  necessary  to  release  from  the  lien  of  this 
instrument  any  property  sold,  according  to  the 
provisions  of  this  Article. 

And  always  further  provided,  however,  that 
the  right  of  the  Company  to  sell  the  land  or 
any  portion  of  the  same,  as  is  in  this  Article 
provided,  and  the  right  of  the  Company  to  sell 
or  procure  the  release  of  timber,  in  any  quan- 
tities whatsoever,  as  provided  in  this  or  other 
articles  hereof,  may  be  suspended  or  revoked 
by  the  Trustees  with  the  concurrence  of  Lyon, 
Gary  &  Company,  in  case  of  litigation  arising 
over  or  affecting,  or  involving  questions  affect- 
ing or  which  may  affect  the  title  to  as  much  as 
320  acres  of  land  embraced  herein ;  or  to  either 
of  the  mill  plants  hereby  mortgaged;  said  sus- 
pension or  revocation  being  optional  with  the 
Trustees  and  Lyon,  Gary  &  Company,  and  if 
the  right  is  exercised,  the  same  shall  remain  in 
effect  until  some  settlement  satisfactory  to 
them  of  such  litigation,  or  until  other  arrange- 
ment is  made  with  reference  thereto,  which  is 
satisfactory  to  them  in  their  discretion. 

The  proceeds  of  the  sale  of  any  portion  of  the 
property  covered    hereby  (that    is    the    gross 


302  TIMBER  BONDS 

amount  of  sale  less  reasonable  commissions  and 
expense  connected  with  such  sale)  shall  be  paid 
and  turned  over  to  the  Corporation  Trustee, 
and  shall  be  treated  by  the  Trustees  in  like  man- 
ner and  used  by  them  for  the  same  purpose  as 
are  the  payments  provided  for  in  Articles  VII 
and  X  hereof. 

Neither  the  Trustees  nor  Lyon,  Gary  &  Com- 
pany shall  be  under  any  liability  for  anything 
done  (or  omitted  to  be  done)  by  them  respect- 
ively in  good  faith  hereunder. 

AETICLE  XII. 

All  moneys  which  may  be  received  as  com- 
pensation for  any  property  or  right  of  the  Com- 
pany which  may  be  taken  by  the  exercise  of  the 
power  of  eminent  domain  or  expropriation  shall 
be  paid  to  the  Corporation  Trustee  and  used 
for  the  retirement  of  bonds  secured  hereby  in 
accordance  with  Article  VII  or  Article  X  here- 
of, excepting  that  if  such  condemnation  or  ex- 
propriation proceedings  shall  be  defended  by 
the  Company,  its  reasonable  expenses  and  at- 
torney's fees  in  making  such  defense  shall  be 
deducted  from  any  award  and  only  the  surplus 
paid  over  to  the  Corporation  Trustee  as  herein 
provided. 

But  the  Company  shall  not  be  entitled  to  have 
the  release  of  any  property  covered  hereby  on 
account  of  bonds  purchased  with  money  coming 
through  condemnation  or  expropriation  pro- 
ceedings. 


TRUST  DEEDS  303 

ARTICLE  XIII. 

If  the  Company  or  its  successors  or  assigns, 
shall  well  and  truly  pay  or  cause  to  be  paid  to 
the  holders  thereof  the  principal  of  all  bonds 
secured  hereby,  or  intended  so  to  be,  and  the 
interest  moneys  to  become  due  thereon  respect- 
ively, at  the  time  and  in  the  manner  specified 
in  the  said  bonds  and  coupons,  without  deduc- 
tion for  United  States,  State,  County,  Municipal 
or  other  tax  or  taxes,  or  assessments,  or  other 
governmental  charges  which  the  Company  may 
be  required  or  permitted  to  pay  or  retain  there- 
from by  any  present  or  future  law,  according 
to  the  true  tenor  and  effect  thereof,  or  if  at 
any  time  the  Company  shall  acquire  and  cancel 
all  of  the  bonds  and  interest  coupons  secured 
hereby,  and  pay  off  and  discharge  all  obliga- 
tions incurred  hereunder  including  the  pay- 
ment of  the  reasonable  charges  and  expenses  of 
the  Trustees,  then  these  presents  and  the  trusts 
hereby  created,  and  all  the  estate,  right,  title 
and  interest  hereby  vested  in  the  said  Trustes, 
their  successors  and  assigns,  in  the  property 
hereby  conveyed  shall  cease  and  determine,  as 
fully  as  if  this  mortgage  had  never  been  exe- 
cuted; and  in  that  case  the  said  Trustees  or 
their  successors  in  the  trust,  on  demand  of  the 
Company  and  the  cancellation  of  the  bonds  and 
coupons  hereby  secured,  shall  execute  and  de- 
liver to  the  Company  all  such  instruments  as 
may  be  necessary  to  discharge  and  cancel  this 
mortgage. 


304  TIMBER  BONDS 

ARTICLE  XIV. 

The  Trustees  shall  have  the  right  at  any 
time  in  their  discretion,  but  not  oftener  than 
once  in  six  months,  except  and  in  case  the  tim- 
ber herein  conveyed  or 'any  portion  of  same 
shall  have  been  damaged  by  fire  or  the  other 
elements,  then  in  which  case  as  often  as  in  the 
opinion  of  the  Trustees  and  of  Lyon,  Gary  & 
Company  it  may  be  deemed  necessary,  to  cause 
an  inspection  of  the  lands  and  timber  herein 
conveyed  to  see  whether  the  property  mort- 
gaged hereunder  has  suffered  any  damage,  or 
been  trespassed  upon,  or  whether  there  has 
been  any  unauthorized  use  of  the  timber  or  of 
the  premises  hereby  conveyed  or  of  the  timber 
thereon;  and  the  expense  of  any  such  investi- 
gation shall  be  borne  and  paid  by  the  Com- 
pany, but  the  Trustees  shall  not  be  required  to 
have  such  an  examination  made  unless  upon 
the  written  request  of  the  holder  or  holders 
of  some  one  or  more  of  the  bonds  secured  here- 
by and  then  outstanding,  together  with  the 
written  concurrence  of  Lyon,  Gary  &  Company 
thereto,  and  unless  such  bondholder  or  bond- 
holders first  advance  or  pay  to  the  Trustees 
the  estimated  cost  of  such  inspection. 

ARTICLE  XV. 

If  default  shall  be  made  in  the  payment  of 
the  principal  of  any  of  said  bonds  when  the 
same  become  due  or  in  the  payment  of  any  in- 


TRUST  DEEDS  305 

terest  money  mentioned  in  said  bonds  or  cou- 
pons, or  any  or  either  of  them,  when  the  same 
becomes  due,  or  if  the  Company  shall  cut  tim- 
ber situate  upon  the  mortgaged  premises  or 
any  part  thereof  or  cut  any  of  the  timber  mort- 
gaged hereunder,  or  suffer  any  of  the  same  to 
be  cut,  otherwise  than  as  herein  provided,  or 
permit  any  other  waste  of  the  mortgaged  prop- 
erty, or  shall  fail  to  perform  any  other  of  the 
covenants  in  this  mortgage  or  deed  of  trust  con- 
tained, on  its  part  to  be  performed,  or  to  cause 
to  be  performed,  and  if  such  default  shall  con- 
tinue for  a  period  of  sixty  days,  the  Trustees 
may,  and  if  thereunto  requested  in  writing  by 
the  holders  of  ten  (10).  per  centum  in  interest 
of  the  said  bonds  then  outstanding,  shall  de- 
clare the  principal  of  all  the  bonds  hereby  se- 
cured then  outstanding  to  be,  and  the  same 
shall  thereupon  become,  immediately  due  and 
payable,  anything  contained  in  said  bonds  or 
herein  the  contrary  notwithstanding. 

ARTICLE  XVI. 

If  default  shall  be  made  in  the  pajTnent  of 
any  bond  or  coupons  when  the  same  become 
due  (whether  such  default  shall  have  continued 
for  the  period  of  sixty  days  or  not),  or  if  de- 
fault be  made  in  the  payment  of  taxes,  as  is 
herein  provided,  and  such  default  shall  con- 
tinue for  the  period  of  sixty  days,  the  Trus- 
tees may,  and  upon  the  request  in  writing  of 


306  TIMBER  BONDS 

the  holders  of  ten  (10)  per  centum  in  interest 
of  the  bonds  and  coupons  then  outstanding, 
and  upon  being  indemnified  to  their  satisfac- 
tion for  any  expenses  and  liabilities  which  they 
may  incur,  shall,  as  the  agents  and  attorneys 
in  fact  of  the  Company,  enter  into  and  take 
full  possession  of  the  lands  and  all  other  prop- 
erty hereby  mortgaged   (except  such  as  may 
have  been  "theretofore  released  under  the  pro- 
visions of  this  instrument)  and  hold,  use,  man- 
age, maintain  and  operate  the  same ;  collect  and 
receive  all  moneys  and  revenues  arising  from 
such  management  and  operation,  and  apply  the 
same,  first  to  the  expenses  of  such  operation, 
including  reasonable    compensation    for  their 
own  services  and  for  the  services  of  their  coun- 
sel, attorneys,  agents  and  servants;  second,  to 
the  maintenance,  management  and  operation  of 
the  property,  including  the  payment  of  taxes, 
assessments  and  other  governmental  charges, 
and  third,  to  the  payment   pro    rata    of    any 
amount,  principal  or  interest,  that  may  be  due 
and  in  default  upon  said  bonds,  together  with 
interest  at  the  rate  of  six  per  cent  per  annum 
on  overdue  installments  of  interest,  but  not  to 
the  payment  of  any  bond  or  coupon  the  time 
for  payment  of  which  may  have  been  extended. 
In  case  all  of  the  said  payments  shall  be  made 
in  full,  the  Trustees  after  making  such  pro- 
vision as  they  may  deem  advisable  for  the  next 
semiannual  installment  of  interest  and  prin- 
cipal,  sliall  restore  to  the  Company  the  pos- 


TRUST  DEEDS  S07 

session  of  the  premises  hereby  conveyed.  This 
power  of  entry  may  be  exercised  as  often  as 
occasion  therefor  shall  arise  pending  the  trust ; 
and  this  power  of  attorney  is  and  shall  be  ir- 
revocable. 

ARTICLE  XVII. 

In  case  (1)  default  shall  be  made  in  the  due 
and  punctual  payment  of  any  interest  on  any 
bond  hereby  secured,  and  any  such  default  shall 
continue  for  a  period  of  sixty  days ;  or  in  case 
(2)  default  shall  be  made  in  the  due  and 
punctual  payment  of  the  principal  of  any  bond 
hereby  secured;  or  in  case  (3)  the  Company 
shall  cut  timber  situate  upon  said  mortgaged 
premises  or  any  timber  mortgaged  hereunder 
or  suffer  the  same  to  be  cut  otherwise  than  is 
herein  provided  and  such  default  shall  continue 
for  a  period  of  sixty  days;  or  in  case  (4)  de- 
fault shall  be  made  in  the  due  observance  or 
performance  of  any  other  covenant,  condition 
or  agreement  herein  required  to  be  kept  or  per- 
formed by  the  Company  and  such  default  shall 
continue  for  a  period  of  sixty  days,  then  and 
in  every  such  case  the  Trustees,  or  either  of 
them,  (a)  may  enter  upon  and  take  possession 
of  the  mortgaged  property,  or  any  part  there- 
of, collect  and  receive  all  rents,  issues,  income 
and  profits  therefrom  and  operate  and  conduct 
the  business  of  the  Company  to  the  same  extent 
and  in  the  same  manner  as  the  Company  might 
do;   (b)  may  cause  this  mortgage  to  be  fore- 


308  TIMBER  BONDS 

closed  and  the  mortgaged  property,  or  any  part 
thereof,  to  be  sold;  (c)  may  proceed  to  protect 
and  enforce  the  rights  of  the  Trustees  and  the 
bondholders  hereunder  whether  for  specific  per- 
formance of  any  covenant,  condition  or  agree- 
ment herein  contained,  or  in  aid  of  the  execu- 
tion of  any  power  herein  granted  or  for  the  en- 
forcement of  such  other  appropriate  legal  or 
equitable  remedy  as  may,  in  the  opinion  of 
counsel,  be  most  effectual  to  protect  and  en- 
force the  rights  aforesaid;  (d)  shall  be  entitled 
as  of  right  without  notice  to  the  appointment 
of  a  receiver  of  the  mortgaged  property,  or 
any  part  thereof,  and  the  Company  does  here- 
by irrevocably  consent  to  such  appointment. 

AETICLE  XVIII. 

The  Company  covenants  that  it  will  not  ap- 
ply for  or  avail  itself  of  any  injunction  or  stay 
proceedings,  or  plead,  or  in  any  way  take  ad- 
vantage of  any  valuation  law,  appraisement 
law,  or  any  other  law,  whether  now  in  force  or 
which  may  hereafter  be  enacted,  which  may  in 
any  way  alter,  impair  or  impede  the  rights  or 
remedies  of  the  holders  of  the  bonds  issued 
hereunder,  or  of  the  Trustees  as  herein  pro- 
vided, or  which  shall  aifect  or  change  the  time, 
place,  means  or  mode  of  perfecting  or  enforc- 
ing such  rights  or  remedies;  and  it  hereby  ex- 
pressly waives  all  benefit  and  advantage  of  any 
and  all  such  laws. 


TRUST   DEEDS  309 

ARTICLE  XIX. 

Upon  any  foreclosure  sale  of  the  property 
hereby  mortgaged,  or  any  part  thereof,  the 
purchaser  in  making  payment  therefor,  shall 
be  entitled,  after  paying  in  cash  so  much  as 
shall  be  necessary  to  cover  the  cost  and  ex- 
penses of  the  sale  and  of  the  proceedings  inci- 
dent thereto,  and  all  other  charges  that  may 
be  decreed  to  be  paid  in  cash,  to  appropriate 
and  use  toward  the  payment  of  the  remainder 
of  the  purchase  price  any  of  the  bonds  or  cou- 
pons issued  hereunder,  and  entitled  to  par- 
ticipate in  the  proceeds  of  such  sale,  reckoning- 
each  bond  or  coupon  so  appropriated  and  used 
at  such  sum  as  shall  be  payable  thereon  out  of 
the  net  proceeds  of  the  sale;  and  proper  re- 
ceipts shall  thereupon  be  given  to  the  holders 
of  such  bonds  or  coupons  for  the  amount  so 
payable  thereon,  and  the  bonds  and  coupons, 
if  the  net  proceeds  of  the  sale  shall  be  sufficient 
to  pay  them  in  full,  shall  be  delivered  up  to 
the  person  making  the  sale  under  the  decree 
of  the  court,  or  otherwise,  for  cancellation;  or 
if  the  proceeds  of  the  sale  shall  not  be  sufficient 
to  pay  such  bonds  or  coupons  in  full,  then 
proper  endorsement  shall  be  made  thereon  of 
the  amount  so  paid  and  they  shall  then  be  re- 
turned to  the  holders, 

ARTICLE  XX. 

Upon  any  foreclosure  sale  of  the  property 
hereby  mortgaged  the  property  shall  be  sold 


310  TIMBER  BONDS 

either  as  a  whole  or  in  parcels  at  the  option 
of  the  Trustees  conducting  the  foreclosure  pro- 
ceedings; and  if  in  parcels  the  same  shall  be 
divided  as  shall  be  considered  for  the  best  in- 
terests of  the  bondholders  by  the  said  Lyon, 
Gary  &  Company,  as  may  be  evidenced  in  writ- 
ing addressed  to  the  Trustees  or  to  the  Court; 
or  in  case  of  such  foreclosure  sale  the  property 
may  at  the  option  of  the  Trustees  be  offered 
first  by  parcels  designated  as  above,  and  then 
as  a  whole,  that  offer  producing  the  highest 
price  for  the  entire  property  to  prevail — any 
law  statutory  or  otherwise  to  the  contrary  not- 
withstanding. And  the  Company  hereby  ex- 
pressly waives  the  right  to  require  any  such 
sale  to  be  made  by  the  acre,  or  in  parcels,  or 
the  right  to  select  such  parcels. 

In  case  any  foreclosure  sale  of  the  premises 
hereby  mortgaged  should  fail  to  realize  suffi- 
cient funds  for  the  payment  in  full  of  the  en- 
tire debt  hereby  secured,  including  all  author- 
ized expenses,  court  costs,  attorneys'  fees,  et 
cetera,  the  balance  remaining  unpaid  shall  be 
and  remain  a  valid,  subsisting  and  enforceable 
obligation  of  and  against  the  Company,  and  a 
deficiency  judgment  against  the  Company  may 
be  taken  thereon,  and  the  Company  hereby  ir- 
revocably consents  that  the  Court  may  direct 
in  the  decree  of  foreclosure  of  this  mortgage 
that  any  balance  which  may  remain  unsatisfied 
after  the  sale  of  the  mortgaged  premises,  and 
the  application  of  the  proceeds  of  said  sale  to- 


TRUST  DEEDS  311 

ward  the  payment  of  the  mortgage  indebted- 
ness, together  with  costs  and  interest,  shall  be 
satisfied  from  any  other  property  of  the  Com- 
pany. 

In  case  the  proceeds  of  foreclosure  sale  of 
the  premises  hereby  mortgaged  should  be  in- 
sufficient to  satisfy  in  full  the  mortgage  debt 
hereby  secured  and  then  existing,  together  with 
costs,  attorneys'  fees,  and  expenses    of    fore- 
closure and  sale,  then  and  in  such  event  the 
Trustees  herein  named,  or  any  successors  to 
such  Trustees,  are  hereby  authorized  to  com- 
mence suit  in  any  court  of  record  (State  or 
Federal)  having  jurisdiction  of  the  amount  in- 
volved, in  any  State  or  Judicial  Circuit  or  Dis- 
trict of  the  United  States,  against  the  Com- 
pany to  recover  judgment  for  the  full  amount 
of  such  deficiency  with  interest  thereon  at  the 
rate  of  six  per  centum  per  annum  from  the  date 
of  such  foreclosure  sale,  together  with  attor- 
neys' fees  and  costs  of  court,    and   the    then 
President  of  the  said  Lyon,  Gary  &  Company 
is  hereby  irrevocably  appointed  the  attorney  in 
fact  of  the  Company  to  enter  the  appearance  of 
the  Company  in  said  suit,  and  to  confess  judg- 
ment in  said  suit  in  favor  of  the  plantiff  there- 
in and  against  the  Company  for  the  full  amount 
of  said  deficiency,  with  interest  at  the  rate  of 
six  per  cent  per  annum,  together  with  court 
costs  and  attorneys'  fees,  as  aforesaid,  and  in 
any  suit  upon  such  judgment  or  upon  any  re- 
newal thereof,  to  recover  the  amount  of  such 


312  TIMBER  BONDS 

judgment  or  the  renewal  of  sucli  judgment,  to 
likewise  enter  the  appearance  of  the  Company 
in  any  such  suit  and  to  confess  judgment  there- 
on for  the  amount  of  said  judgTaent  or  renewal 
thereof  with  interest  thereon  at  the  rate  afore- 
said with  costs  of  court  and  attorneys'  fees, 
and  it  is  agreed  that  this  clause  shall  be  deemed 
a  separate  and  independent  clause  of  this  in- 
strument, and  shall  be  treated  and  deemed  as  a 
contract  entered  into  between  the  parties  here- 
to to  be  governed  by  the  laws  of  the  State  of 
Illinois  to  the  same  effect  as  if  this  instrument 
had  been  entered  into  in  said  State  and  were 
to  be  performed  there. 

ARTICLE  XXI. 

In  case  of  a  foreclosure  of  this  mortgage  or 
deed  of  trust  the  proceeds  shall  be  applied: 

First,  to  the  payment  of  all  expenses  of  pro- 
tecting and  enforcing  this  trust,  including  rea- 
sonable compensation  to  the  Trustees,  and  all 
expenses  incurred  by  them  in  connection  here- 
with, and  including  such  reasonable  attorneys' 
fees  as  may  be  allowed  or  adjudged  by  the 
Court  for  any  service  that  may  be  rendered 
either  in  protecting  this  trust  or  enforcing  the 
same. 

Second,  to  the  payment  pro  rata  of  all  the 
bonds  and  interest  coupons  secured  hereby 
without  preference  of  bonds  over  coupons  or 
coupons  over  bonds,  subject,  however,  to  the 


TRUST  DEEDS  313 

provisions  of  Article  VI  hereof;  but  only  cou- 
pons that  have  matured  and  the  earned  por- 
tion of  those  next  maturing  shall  be  entitled 
to  participate  in  such  proceeds;  and, 

Third,  the  balance,  if  any  there  be,  shall  be 
paid  to  the  Company  or  its  order. 

ARTICLE  XXII. 

No  delay  or  omission  of  the  Trustees,  or  of 
any  holder  of  bonds  hereby  secured,  to  exercise 
any  right  or  power  accruing  upon  any  default, 
shall  impair  any  such  right  or  power,  or  shall 
be  construed  to  be  a  waiver  of  any  such  default, 
or  an  acquiescence  therein ;  and  every  such  pow- 
er and  remedy  given  by  this  instrument  to 
the  Trustees,  or  to  the  bondholders,  may  be  ex- 
ercised from  time  to  time  and  as  often  as  may 
be  deemed  expedient  by  the  Trustees  or  by  the 
bondholders. 

ARTICLE  XXIII. 

Except  as  may  be  herein  expressly  provided 
to  the  contrary,  no  right  or  remedy  herein  con- 
ferred upon  or  reserved  to  the  Trustees  shall 
be,  or  is  intended  to  be  exclusive  of  any  other 
right  or  remedy,  but  every  such  right  or  remedy 
herein  provided  shall  be  cumulative,  and  shall 
be  in  addition  to  every  other  right  or  remedy 
given  hereunder,  or  now  or  hereafter  existing 
at  law  or  in  equity  or  by  statute;  and  every 
power  and  remedy  given  by  this  instrument  to 


314  TIMBER  BONDS 

the  Trustees  may  be  exercised  from  time  to 
time  as  often  as  may  be  deemed  expedient.  No 
delay  or  omission  of  the  Trustees  to  exercise 
any  right  or  power  arising  from  any  default 
shall  impair  any  such  right  or  power,  or  shall 
be  construed  to  be  a  waiver  of  any  such  default 
or  an  acquiescence  therein. 

ARTICLE  XXIV. 

Every  holder  of  any  of  the  bonds  secured 
hereby  accepts  the  same  subject  to  the  express 
understanding  and  agreement  that  every  right 
of  action,  whether  at  law  or  in  equity,  under 
this  instrument,  is  vested  exclusively  in  the 
Trustees,  and  under  no  circumstances  shall  the 
holder  of  any  bonds  or  coupons,  or  any  number 
of  such  holders,  have  any  right  to  institute  any 
action  at  law  or  any  suit  or  proceeding  in 
equity,  or  otherwise,  under  this  instrument,  or 
upon  any  bond  or  coupon  secured  hereby,  for 
the  iDurpose  of  enforcing  any  covenant  or  rem- 
edy herein  or  in  said  bonds  or  coupons  con- 
tained, or  to  foreclose  this  mortgage,  except  in 
case  of  refusal  on  the  part  of  the  Trustees  to 
comply  with  any  duty  imposed  on  them  in  re- 
spect of  any  such  covenant  or  foreclosure  after 
demand  by  the  holder  or  holders  of  such  bonds 
or  coupons  and  the  production  of  such  bonds 
or  coupons  by  the  holder  thereof  to  the  Trus- 
tees, or  the  furnishing  by  such  holders  of  other 
evidence  satisfactory  to  the  Trustees  that  they 


TRUST  DEEDS  315 

are  such  holders,  and  the  giving  to  the  trustees 
of  indemnity  satisfactory  to  them,  securing 
them  against  liability  by  reason  of  the  action 
requested;  but  no  inaction  by  said  Trustees, 
upon  any  such  request  shall  be  deemed  a  re- 
fusal until  after  the  expiration  of  a  reasonable 
time  and  not  less  than  twenty  (20)  days  for 
the  consideration  thereof  by  said  Trustees. 

In  every  case  in  which  the  Trustees  are  au- 
thorized or  required,  under  any  provision  of 
this  instrument,  to  take  any  action  upon  the  re- 
quest of  the  holders  of  said  bonds,  the  Trustees 
shall  have  the  right  to  require  the  person  or 
persons  presenting  such  request  to  furnish 
proof  as  to  the  ownership  of  such  bonds  as  may 
be  presented  by  him  or  them,  by  affidavit  or 
other  evidence  satisfactory  to  the  Trustees ;  and 
if  such  proof  be  so  required,  the  said  request 
shall  be  without  effect  until  such  proof  shall  be 
furnished. 

ARTICLE  XXV. 

So  long  as  there  shall  be  no  default  in  any 
of  the  covenants  in  this  instrument  contained, 
the  Company  shall  continue  in  the  possession 
of  all  the  property  embraced  herein,  and  here^ 
by  conveyed  to  the  Trustees. 

ARTICLE  XXVI. 

The  Trustees  herein  named,  or  either  of 
them,  may  resign  or  discharge  themselves  of 


316  TIMBER  BONDS 

and  from  the  trust  hereby  created,  by  notice  in 
writing  to  be  given  to  the  Company  and  pub- 
lished once  a  week  for  two  consecutive  weeks 
in  a  paper  of  general  circulation  published  in 
the  said  City  of  Chicago,  and  in  a  similar  paper 
published  in  the  said  City  of  Portland,  at  least 
thirty  days  before  such  resignation  shall  take 
effect,  or  such  shorter  time  as  the  party  of  the 
first  part  may  accept  as  sufficient  notice;  but 
such  resignation  shall  take  effect  immediately 
upon  the  appointment  of  new  Trustees  herein 
in  place  of  the  Trustees  resigning  if  such  new 
Trustees  shall  be  appointed  before  the  time 
limited  by  such  notice. 

The  corporation  of  Lyon,  Gary  &  Company 
may  in  like  manner  resign  or  discharge  itself 
of  the  duty  herein  imposed  upon  it,  in  which 
case  successors  to  its  duties  and  authority  shall 
be  selected  and  appointed  in  like  manner  as 
successor  Trustees  hereunder  may  be  selected 
and  appointed. 

ARTICLE  XXVII. 

In  case  the  trust  created  hereby  shall  become 
vacant  by  reason  of  the  resignation,  incapacity 
or  inability  to  act  of  the  said  Trustees,  or  either 
of  them,  or  of  any  successor  Trustee,  or  other- 
wise (except  as  provided  in  the  following 
Article  XXVIII  hereof),  it  shall  be  lawful  for 
the  holders  of  the  majority  in  amount  of  the 
bonds  then  outstanding  to  appoint  a  successor, 
or  successors,  by  a  writing  by  them  signed,  or. 


TRUST   DEEDS  317 

for  any  judge  of  the  United  States  Circuit 
Court  for  the  Ninth  Judicial  Circuit  in  de- 
fault of  such  appointment,  to  appoint  such  a 
successor,  or  successors,  on  the  application  of 
the  holders  of  not  less  than  one-tenth  in  amount 
of  the  said  bonds  then  outstanding, — one 
Trustee  always  to  be  a  private  person,  and  the 
other  to  be  a  Trust  Company  organized  under 
the  laws  of  the  State  of  Illinois. 

And  upon  any  such  appointment  being  made, 
and  the  said  trust  being  accepted,  such  suc- 
cessors or  substitute  Trustees  shall,  without 
further  act  or  deed,  become  vested  with  all  and 
singular  the  estate,  right  and  powers,  and  shall 
perform  all  the  duties  of  Trustees,  in  like  man- 
ner, and  with  the  same  effect  as  if  named  in 
this  instrument  as  Trustees. 

Always  provided,  however,  that  the  imme- 
diate successor,  if  any  there  be,  to  John  K. 
Lyon,  Trustee,  shall  be  John  W.  Gary,  of  Chi- 
cago, State  of  Illinois,  if  said  Gary  will  at  the 
time  accept  such  trust. 

ARTICLE  XXVIII. 

The  holders  of  a  majority  in  amount  of  the 
outstanding  bonds  secured  by  this  instrument, 
provided  the  Company  shall  join,  (or  the 
holders  of  three-quarters  in  amount  of  the 
bonds  then  outstanding  hereunder  without  such 
joinder)  may,  by  a  writing  under  their  respect- 
ive hands  and  seals,  change  the  Trustees  and 


318  TIMBER  BONDS 

appoint  new  Trustees  (one  Trustee  always  to 
be  a  private  person,  and  the  other  to  be  a 
Trust  Company  organized  under  the  laws  of 
the  State  of  Illinois),  said  John  W.  Gary  to 
be  the  immediate  successor  to  said  John  K. 
Lyon,  which  instrument,  when  recorded  in  the 
proper  offices  for  recording  deeds  and  mort- 
gages in  the  Counties  of  Lane  and  Linn,  State 
of  Oregon,  (and  on  payment  to  said  Trustees 
of  all  charges  and  compensation  to  which  they 
shall  at  that  time  be  entitled  hereunder)  shall 
ipso  facto,  and  without  any  further  action,  sub- 
stitute such  new  Trustees  in  the  place  of  the 
Trustees  herein  named,  or  in  place  of  any  suc- 
cessor Trustees,  with  all  the  rights,  powers 
and  privileges  granted  to  the  said  Trustees 
under  this  instrument,  and  no  conveyance  from 
the  old  Trustees  to  the  said  Trustees  thus  ap- 
pointed shall  be  necessary  to  convey  the  trust 
premises  to  such  new  Trustees,  but  the  old 
Trustees  shall  and  will,  upon  the  request  of 
such  new  Trustees,  execute  any  conveyance 
necessary  or  proper  in  order  to  vest  the  said 
premises  in  such  new  Trustees. 

In  case  of  the  death  or  resignation,  or  the 
incapacity  or  inability  of  the  said  John  K. 
Lyon  to  act  as  Trustee  hereunder,  the  said 
Corporation  Trustee  and  said  Lyon,  Gary  & 
Company  may  in  like  manner  (to  wit:  by  writ- 
ing properly  executed  and  recorded)  appoint 
another  person  in  his  place  and  stead,  in  which 
case  such  successor  so  appointed  shall  succeed 


TRUST   DEEDS  319 

to  all  the  title,  right,  powers  and  privileges 
herein  or  hereby  conferred  upon  or  vested  in 
the  said  John  K.  Lyon  (his  immediate  suc- 
cessor, however,  to  be  the  said  John  W.  Gary), 
this  being  an  alternative  method  of  filling  such 
vacancy,  in  addition  to  that  above  provided  in 
this  and  the  preceding  Article  hereof. 

ARTICLE  XXIX. 

It  is  expressly  understood  and  agreed  that 
no  obligation  whatever  rests  upon  the  Trus- 
tees to  see  to  the  recording  of  this  instrument, 
nor  to  do  any  act  suitable  or  proper  to  be  done 
for  the  continuing  of  the  lien  created  hereby, 
nor  to  give  notice  of  the  existence  of  such  lien, 
nor  to  do  any  act  which,  by  the  terms  of  this 
instrument,  is  required  to  be  done  by  some 
party  hereto  other  than  said  Trustees.  Said 
Trustees  shall  be  under  no  duty  or  obligation 
not  affirmatively  expressed  on  the  face  of  these 
presents.  Nor  are  said  Trustees  required  by 
this  instrument  to  take  any  action  nor  do  any 
act  made  requisite  by  statute  for  protecting, 
perpetuating  or  keeping  good  the  lien  of  these 
presents  upon  the  land,  premises  and  property, 
or  any  part  thereof,  hereby  conveyed  or  in- 
tended so  to  be;  nor  shall  the  said  Trustees 
be  held  responsible  for  the  consequence  of  any 
breach  by  the  Company  or  by  its  agents  or 
servants  of  any  of  the  covenants  herein  or  in 
said  bonds  contained,  on  the  part  of  said  party 


320  TIMBER  BONDS 

of  the  first  part  to  be  kept  and  performed,  nor 
for  or  on  account  of  any  act  of  the  Company 
or  of  its  agents  or  servants,  of  any  kind,  char- 
acter or  nature  whatsoever.  Said  Trustees 
shall  have  no  responsibility  as  to  the  validity 
of  this  mortgage  or  deed  of  trust,  nor  as  to 
the  execution  or  acknowledgment  thereof,  nor 
as  to  the  amount  or  extent  of  the  security  af- 
forded by  the  property  covered  hereby;  nor 
shall  said  Trustees  in  any  other  manner,  or 
under  any  circumstances,  be  answerable  or  ac- 
countable, except  for  bad  faith;  it  being  ex- 
pressly understood  and  agreed  that  the  recit- 
als herein  contained  are  made  by  and  on  behalf 
of  the  said  party  of  the  first  part  and  that  the 
Trustees  are  not  responsible  for  the  correct- 
ness thereof. 

Said  Trustees  shall  not  be  under  any  obliga- 
tion to  take  any  action  toward  the  execution 
or  enforcement  of  the  trust  hereby  created, 
which,  in  their  opinion,  would  be  likely  to  in- 
volve them  in  expense  or  liability,  nor  to  de- 
fend any  suit,  unless  one  or  more  of  the  holders 
of  the  bonds  hereby  secured  shall,  as  often  as 
required  by  the  said  Trustees,  furnish  them 
with  reasonable  and  satisfactory  indemnity 
against  such  expense  or  liability;  nor  shall  the 
said  Trustees  be  required  to  take  notice  of  any 
default  hereunder,  unless  notified  in  writing  of 
such  default  by  the  holders  of  at  least  ten  (10) 
per  centum  of  the  amount  of  the  bonds  hereby 
secured  and  then  outstanding,  nor  to  take  any 


TRUST    DEEDS  321 

action  iu  respect  of  any  default  unless  re- 
quested to  take  such  action  by  writing,  signed 
by  the  holders  of  as  great  a  proportion  of  said 
bonds  and  be  tendered  indemnity  as  aforesaid, 
anything  herein  contained  to  the  contrary  not- 
withstanding; but  neither  any  such  notice  or 
request  nor  this  provision  therefor,  shall  affect 
any  discretion  herein  given  to  the  said  Trustees 
to  determine  whether  or  not  they  will  take  ac- 
tion in  respect  to  such  default,  or  to  take  action 
without  such  request. 

The  Trustees  shall  be  protected  in  acting 
upon  any  request,  consent,  certificate,  bond,  af- 
fidavit, or  other  paper  or  document  believed 
by  them  to  be  genuine  and  to  be  signed  by  the 
proper  party  or  parties. 

Said  Trustees  shall  be  entitled  to  be  reim- 
bursed for  all  proper  outlays  of  every  sort  and 
nature  by  them  incurred,  or  for  which  they 
may  be  obligated  in  the  discharge  of  this  trust, 
and  to  receive  a  reasonable  and  proper  com- 
pensation for  any  duties  that  they  may  at  any 
time  perform  in  the  discharge  of  the  same,  and 
shall  have  a  lien  therefor  upon  the  mortgaged 
property,  prior  and  paramount  to  the  bonds 
hereby  secured. 

All  expenses,  fees,  taxes  and  disbursements 
of  any  kind  which  have  been  paid  or  made,  or 
which  may  be  paid  or  made  or  incurred  by  the 
Trustees  in  order  to  comply  with  any  law  or 
laws  of  the  State  of  Oregon  respecting  foreio-n 
corporations,  or  relating  to  the  right,  authority, 


322  TIMBER  BONDS 

or  qualification  of  the  Trustees  to  accept  this 
trust  and  perform  their  duties  hereunder,  and 
all  liabilities  and  expenses  which  may  be  in- 
curred by  them,  and  all  penalties,  judgments  or 
forfeitures  which  may  be  assessed,  levied,  or 
recovered  against  the  Trustees  for  failure  to 
comply  with  any  such  law  or  laws  shall  be  a 
charge  and  shall  constitute  a  lien  upon  the 
mortgaged  property  and  premises  prior  and 
paramount  to  the  bonds  hereby  secured.  In 
case  at  any  time  it  shall  be  necessary  and 
proper  for  the  said  Trustees,  or  their  succes- 
sors, to  make  any  investigation  respecting  any 
facts,  preparatory  to  taking  or  not  taking  any 
action,  or  doing  or  not  doing  anything  under 
this  deed  of  trust,  the  certificate  of  the  said 
party  of  the  first  part  under  its  corporate  seal 
and  sworn  to  by  its  President,  Treasurer  or 
Secretary,  shall  be  sufficient  evidence  of  such 
fact  to  protect  the  said  Trustees,  or  their  suc- 
cessors, in  any  action  that  they  may  take  or 
decline  to  take  by  reason  of  the  supposed  ex- 
istence of  such  fact. 

Unless  it  shall  in  writing  expressly  agree  to 
do  so,  the  Corporation  Trustee  shall  not  be 
obligated  to  pay  interest  on  any  sum  of  monej" 
which  may  be  deposited  with  it  under  any  of 
the  provisions  of  this  instrument,  but  if  said 
Corporation  Trustee  shall  in  writing  expressly 
agree  to  pay  interest  on  any  such  deposits,  the 
amount  of  such  interest  shall  be  credited  to  or 
paid  into  the  fund  for  retiring  bonds  as  pro- 


TRUST  DEEDS  323 

vided   for  in   Article  VII  and  other  Articles 
hereof. 

ARTICLE  XXX. 

John  K.  Lyon,  one  of  tlie  parties  of  the  sec- 
ond part,  lias  been  appointed  as  Trustee  here- 
under so  that  if  l)y  any  present  or  future  law 
in  any  jurisdiction  in  which  it  may  be  neces- 
sary to  perform  any  act  in  the  execution  of  the 
trusts  hereby  created,  the  Corporation  Trus- 
tee, or  its  successor,  or  successors,  may  be  in- 
competent or  unqualified  or  unable  or  im will- 
ing to  act  as  such  Trustee,  then  all  of  the  acts 
required  to  be  performed  in  such  jurisdiction 
in  the  execution  of  the  trusts  herebv  created, 
shall  and  will  be  performed  by  said  John  K. 
Lyon  as  Trustee,  or  his  successor,  or  succes- 
sors, acting  alone.  Except  as  it  may  be  deemed 
necessary  for  said  John  K.  Lyon,  his  suc- 
cessor, or  successors,  to  solely  execute  the 
trusts  hereby  created,  Union  Trust  Company, 
Trustee,  or  its  successor,  or  successors,  may 
solely  have  and  exercise  the  powers  and  shall 
be  solely  charged  with  the  performance  of  the 
duties  hereinbefore  declared  on  the  part  of  the 
Trustees  to  be  had  and  exercised,  or  to  be  per- 
formed. Any  request  in  writing  by  the  Cor- 
poration Trustee,  or  by  any  Trustee  appointed 
in  succession  to  it,  to  the  said  John  K.  Lyon, 
Trustee  hereunder,  or  to  any  Trustee  appoint- 
ed in  succession  to  him,  shall  be  sufficient 
warrant  for  the  individual  Trustee,  or  his  sue- 


324  TIMBER  BONDS 

cessor,  taking  such  action  as  may  be  so  re- 
qnested,  and  shall  relieve  liim  of  all  liability 
in  the  premises.  Such  individual  Trustee,  or 
his  successor,  may  delegate  to  the  Corporation 
Trustee  herein  named,  or  its  successor,  the  ex- 
ercise of  any  power  discretionary  or  otherwise 
conferred  by  any  provisions  of  tbis  instrument. 
And  it  is  furtber  provided  that  neither  of  the 
Trustees  herein  named,  nor  any  successor 
Trustee  to  either  of  tbem,  shall  be  liable  for 
anv  default  or  act  of  omission  or  commission 
of  any  co-trustee. 

ARTICLE  XXXI. 

The  word  ''Trustees"  as  used  in  this  instru- 
ment shall  be  held  and  construed  to  mean  the 
Trustees  herein  named,  or  their  successor  or 
successors,  for  the  time  being  in  the  trust  here- 
by created;  the  words  "the  Company"  shall  be 
held  and  construed  to  mean  Fischer  Lumber 
Co.,  its  successors  or  assigns. 

And  wherever  the  name  "Lvon,  Garv  & 
Company"  is  used  herein  it  shall  be  held  and 
construed  to  mean  Lyon,  Gary  &  Company,  the 
present  Illinois  Corporation,  or  such  j^erson, 
firm  or  corporation  as  may  succeed  said  cor- 
poration according  to  the  terms  of  this  instru- 
ment. 

ARTICLE  XXXII. 

This  instrument  and  the  negotiations  lead- 
ing up  thereto,  and  any  that  may  follow  in 


TRUST    DEEDS  325 

carrying  out  tlie  purposes  of  this  bond  issue 
and  the  negotiation  and  sale  of  the  bonds  is- 
sued hereunder,  are  hereby  declared  to  be  and 
shall  in  all  things  be  deemed  and  treated  as  an 
Oregon  contract  entered  into  between  the  par- 
ties hereto  and  the  purchasers  or  holders  of 
all  or  any  portion  of  the  bonds  issued  here- 
under and  shall  be  governed  by  the  laws  of  the 
said  State  of  Oregon,  to  the  same  effect  as  if 
all  the  negotiations  above  described,  occurring 
))otli  before  and  after  the  execution  of  this  in- 
strument (instead  of  but  a  portion  of  them) 
had  been  had  in  that  State, 

And  each  Article  of  this  instrument  is  hereby 
declared  to  be  and  shall  be  held  to  be  a  sep- 
arate and  independent  clause  thereof. 

ARTICLE  XXXIII. 

Union  Trust  Company  and  John  K.  Lyon 
Jiereby  accept  tlie  trusts  herein  and  hereby  de- 
clared and  created,  and  agree  to  perform  the 
same  upon  the  terms  and  conditions  hereinbe- 
fore set  forth. 

In  Witness  WnEKEor,  the  said  Fischer  Lum- 
ber Co.  and  the  said  Union  Trust  Company 
liave  caused  this  instrument  to  be  executed  in 
duplicate  in  their  corporate  names  by  their  re- 
spective Presidents  or  Vice-Presidents  and 
their  corporate  seals  to  be  hereunto  affixed 
and  attested  by  tlieir  respective  Secretaries, 
and  the  said  John  K.  Lyon  has  likewise  exe- 


326 


TIMBER  BONDS 


cuted  the  same  in  duplicate,  all  in  the  presence 
of  witnesses,  on  the  date  first  herein  written. 

Fischer  Lumber  Co. 
By  Fred  Fischer,  Sr., 
Attest:  Its  President. 

Carl  E.  Fischer, 
Its  Secretary. 
Witness  to  the  execution /Fischer  Lumber  Co\ 
this  instrument  by        I       Incorporated        / 
Fischer  Lumber  Co. :    /  [seal]  / 

J.  S.  Churchill.  1910  \ 

James  Cole.  \      Marcola,  Ore.        ' 

Union  Trust  Company, 
By  Frederick  L.  Wilk, 
Attest:  Its  Vice  President. 

RuFus  F.  Chapin, 
Its  Secretary. 

Union 

Trust  Company 

[seal] 


Witness  to  the  execution  / 
of  this  instrument  by  \ 
Union  Trust  Compan\ 

W.  R.  Curtis. 

C.  G.  Powell. 


\  Incorporated  1857 
/Consolidated  1907 
\       Chicago,  111. 
John  K.  Lyon. 


Witness  to  the  execution 
of  this  instrument  by 
John  K.  Lyon : 

W.  K.  FiFIELD. 

F.  C.  Strobehn. 


trust  deeds  327 

State  of  Oregon, 
County  of  Lane. 

On  this  the  20th  day  of  February,  1911,  be- 
fore me,  J.  S.  Chiircliill,  a  Notary  Public  in 
and  for  said  State  and  County,  personally  ap- 
peared Fred  Fischer,  Sr.,  and  Carl  E.  Fischer, 
to  me  personally  known,  who,  being  duly 
sworn,  did  say  that  they  are  the  President  and 
the  Secretary  respectively  of  the  Fischer  Lum- 
ber Co.,  an  Oregon  corporation,  and  that  the 
seal  affixed  to  the  foregoing  instrument  is  the 
corporate  seal  of  said  corporation,  and  that 
the  said  instrument  was  sigTied  and  sealed  in 
behalf  of  said  Corporation  by  authority  of  its 
Board  of  Directors ;  and  the  said  Fred  Fischer, 
Sr.,  and  Carl  E.  Fischer,  acknowledged  the  said 
instrument  to  be  the  free  act  and  deed  of  said 
corporation. 

In  Testimony  Whereof,  I  have  hereunto  set 
my  hand  and  affixed  my  official  seal  at  my  of- 
fice in  said  State  and  County,  this  the  day  and 
vear  first  in  this  mv  certificate  written. 

My  Notarial  Commission  is  dated  April  12, 
1909,  and  expires  April  12,  1911. 

J.   S.   CHURCHn^L, 

Notary  Public,  Lane  County, 
State  of  Oregon,  residing  at 
Marcola,  Said  State. 

J.  S.  Churchill,  Notary  Public, 
[seal] 
State  of  Oregon. 


328  timber  bonds 

State  of  Illinois, 
County  of  Cook. 

On  this  2d  day  of  February,  1911,  before  me, 
H.  L.  Benson,  a  Notary  Public  in  and  for  said 
State  and  County,  appeared  Frederick  L.  Wilk 
and  Eufus  F.  Chapin,  to  me  personally  known, 
who,  being  duly  sworn,  did  say  that  they  are 
respectively  the  Vice  President  and  the  Secre- 
tary of  Union  Trust  Company,  an  Illinois  cor- 
poration; and  that  the  seal  affixed  to  the  fore- 
going instrmnent  is  the  corporate  seal  of  said 
corporation,  and  that  said  instrument  was 
signed  and  sealed  in  behalf  of  said  Corporation 
by  authority  of  its  Board  of  Directors ;  and  the 
said  Frederick  L.  Wilk  and  Eufus  F.  Chapin 
acknowledged  the  said  instrument  to  be  the 
free  act  and  deed  of  said  corporation. 

In  Testimony  Wheeeof,  I  have  hereunto  set 
my  hand  and  affixed  my  official  seal  at  my  of- 
fice in  said  State  and  County,  this  the  day  and 
year  first  in  this  my  certificate  written. 

My  Notarial  Commission  is  dated  October  12, 
1910,  and  expires  October  12,  1914. 

H.  L.  Benson, 

Notary  Puhlic,  Cook  County, 
State  of  Illinois,  residing  at 
Chicago,  said  State. 

H.  L.  Benson,  Notary  Public, 
[seal] 
Cook  Co.,  111. 


trust  deeds  329 

State  of  1ll,inois, 
Cook  County. 

I,  Eobert  M.  Sweitzer,  County  Clerk  of  the 
County  of  Cook,  do  hereby  certify  that  I  am 
the  lawful  custodian  of  the  official  records  of 
Notaries  Public  of  said  County,  and  as  such 
officer  am  duly  authorized  to  issue  certificates 
of  magistracy ;  that  H.  L.  Benson,  whose  name 
is  subscribed  to  the  proof  of  acknowledgment 
of  the  annexed  instrument  in  writing,  was,  at 
the  time  of  taking  such  proof  of  acknowledg- 
ment, a  Notary  Public  in  and  for  Cook  County, 
duly  commissioned,  sworn  and  acting  as  such 
and  authorized  to  take  acknowledgments  and 
proofs  of  deeds  or  conveyances  of  lands,  tene- 
ments or  hereditaments,  in  said  State  of  Illi- 
nois, and  to  administer  oaths ;  all  of  which  ap- 
pears from  the  records  and  files  in  my  office; 
that  I  am  well  acquainted  with  the  handwriting 
of  said  Notary  and  verily  believe  that  the  sig- 
nature to  the  said  proof  of  acknowledgment 
is  genuine;  and  further,  that  the  annexed  in- 
strument is  executed  and  acknowledged  accord- 
ing to  the  laws  of  the  State  of  Illinois. 

In  Testimony  Whereof,  I  have  hereunto  set 
my  hand  and  affixed  the  seal  of  the  County  of 
Cook  at  my  office  in  the  City  of  Chicago  in  the 
said  County,  this  2d  day  of  February,  1911. 

Robert  M.  Sweitzer, 

County  Clerk. 
\  Seal  of  County  of  Cook,] 


i  Seal  ol  County  of  Cook,]   [ 
(  Illinois.  J 


330  timber  bonds 

State  of  Illinois, 
County  of  Cook. 

Before  me,  Fred  C.  Strobehn,  the  undersign- 
ed, a  Notary  Public  in  and  for  the  State  and 
County  aforesaid,  personally  appeared  the 
above  named  John  K.  Lyon,  to  me  known  to  be 
the  individual  described  in,  and  who  executed 
the  above  instrument,  and  the  said  John  K. 
Lyon  acknowledged  that  he  executed  the  same 
this  2d  day  of  February,  1911. 

My  Notarial  Commission  is  dated  September 
19,  1908,  and  expires  September  19,  1912. 

Witness  my  hand  and  official  seal  at  office 
in  Chicago,  Cook  County,  State  of  Illinois,  on 
the  date  above  written. 

Feed  C.  Strobehn, 
Notary  Public,  Cook  County, 
State  of  Illinois,  residing  at 
Chicago,  said  State. 


1 


Feed  C.  Steobehn,  Notary  Puhlic, 
[seal] 
Cook  County,  111. 


State  of  Illinois, 
Cook  County. 

I,  Robert  M.  Sweitzer,  County  Clerk  of  the 
County  of  Cook,  do  hereby  ceetify  that  I  am 
the  lawful  custodian  of  the  official  records  of 
Notaries  Public  of  said  County,  and  as  such 


TRUST    DEEDS  331 

officer  am  duly  authorized  to  issue  certificates 
of  magistracy;  that  Fred  C.  Strobehn,  whose 
name  is  subscribed  to  the  proof  of  acknowledg- 
ment of  the  annexed  instrument  in  writing, 
was,  at  the  time  of  taking  such  proof  of  ac- 
knowledgment, a  Notary  Public  in  and  for  Cook 
County,  duly  commissioned,  sworn  and  acting 
as  such  and  authorized  to  take  acknowledg- 
ments and  proofs  of  deeds  or  conveyances  of 
lands,  tenements  or  hereditaments,  in  said 
State  of  Illinois,  and  to  administer  oaths;  all 
of  which  appears  from  the  records  and  files 
in  my  office;  that  I  am  well  acquainted  with 
the  handwriting  of  said  Notary  and  verily  be- 
lieve that  the  signature  to  the  said  proof  of  ac- 
knowledgment is  genuine ;  and  further,  that  the 
annexed  instrument  is  executed  and  acknowl- 
edged according  to  tlio  laws  of  the  State  of 
Illinois. 

In  Testimony  Whereof,  I  have  hereunto  set 
my  hand  and  affixed  the  seal  of  the  County  of 
Cook  at  my  office  in  the  City  of  Chicago  in 
the  said  County,  this  2d  day  of  February,  1911. 

Robert  M.  Sweitzer, 
County  Clerk. 

I  Seal  of  County  of  Cook,     ] 
{  Illinois.  ( 


332  timber  bonds 

State  of  Oregon,  1 

f  ss 
Lane  County.     J 

I  hereby  certify  that  the  withiu  instrument 
was  filed  for  record  this  21st  day  of  February, 
1911,  at  10:30  o'clock,  A.  M.,  and  duly  record- 
ed in  Book  31,  page  64,  Lane  County  Mortgage 
Records. 

S.  M.  Russell, 

County  Clerk. 
Per  J.  A.  Fountain, 
Deputy. 
Seal  of  Lane  County, 
State  of  Oregon. 


State  of  Oregon,    1 
County  of  Linn.     J      '    j 

I  hereby  certify  that  the  witbin  was  received 
and  duly  recorded  V)y  me  in  Linn  County  Rec- 
ords, Book  of  Mortgages,  A^ol  53,  x)age  95,  on  the 
28th  day  of  Feb.,  1911,  at  11:06  o'clock  A.  M. 

Grant  Froman, 
Recorder  of  Linn  County,  Oregon. 

Seal  of  Recorder  of  Conveyances, 
Linn  County,  Oregon. 


CHAPTER  XI 

STYLE  OF  BONDS. 

The  serial  bond  is  tlie  only  safe  form  uuder 
which  to  write  a  loan  en  an  active  Inmbering 
property.  The  loan  is  made  for  the  specific 
purpose  of  enabling  the  ])orrower  to  deplete  the 
security.  Every  day  the  plants  operate,  the 
amount  of  standing  timber  is  reduced.  The 
mills,  railroad  and  logging  equipment  are  use 
less  as  security  for  a  timber  bond  wlien  the 
stumpage  is  exhausted.  Logging  equipment, 
railroad,  sawmills  and  pulp  mills  are  merely 
t]ie  bridge  over  which  the  tree  travels  to  mar- 
ket. Such  a  bridge  stripped  of  traffic  is  eco- 
nomic waste  and  has  only  a  scrapping  value 
as  security  for  a  loan  on  cut  off  timber  land, 
The  bridge  must  be  a  toll-bridge  and  collect 
for  the  loads  that  cross.  The  loan  must  be  re- 
tired as  rapidly  as  the  timber  is  milled  or  man- 
ufactured into  merchantable  products.  A  sink- 
ing fund  payable  annually  to  be  held  until  ma- 
turity of  the  bonds  is  not  sound  financing  in 
timber  or  allied  securities.  These  sinking 
fimds  call  for  the  payment  of  a  certain  per- 
centage of  the  face  of  the  loan  to  be  deposited 
annually  with  a  trustee  or  the  treasurer  of  the 
company.  This  percentage  is  an  amount  usual- 
ly estimated  to  be  sufficient  to  pay  off  the  loan 
when  all  the  timber  is  cut.    The  fate  of  sinking 

333 


334  TIMBER  BONDS 

funds  is  notorious.  The  vicissitudes  of  com- 
mercial life  are  well  known.  Trust  companies 
fail  occasionally.  Stock  ownership  changes 
hands  with  passing  time.  Managers  die  or  re- 
tire and  thus  vary  the  policy  over  a  period 
of  twenty  or  thirty  years.  The  group  of  men 
who  contracted  the  debt  that  runs  over  a  gen- 
eration or  a  life  time  rarely  expect  to  be  pres- 
ent at  its  payment. 

In  a  timber  loan,  where  the  property  grows 
less  valuable  each  operating  year,  the  debt 
should  mature  in  time  to  leave  a  safe  margin 
of  timber  behind  it.  Bond  dealers  and  trustees 
should  not  risk  being  forced  to  operate  a  mill- 
ing or  pulp  property  in  order  to  pay  out  the 
loan.  Dividends  should  not  be  declared  nor  pro- 
fits paid  while  the  property  has  a  bonded  debt. 
The  principles  applied  to  a  railroad  bond, 
where  the  values  usually  enhance  with  age, 
cannot  be  used  in  connection  with  a  timber  or 
coal  property  where  each  working  year  means 
less  security  under  the  mortgage.  All  serial 
bonds  are  not  safe.  Today  there  are  outstand- 
ing serial  timber  bonds  that  are  very  risky. 
The  security  has  been  over  valued,  the  timber 
over  estimated  or  the  sinking  fund  providing 
for  semi-annual  serial  payments  improperly 
based.  The  era  of  high  finance  in  timber  bonds 
is  hovering  around  and  to  ward  it  off  the  ut- 
most care  is  necessary.  In  timber  bonds  as  in 
other  attractive  investments  there  are  the  get- 
rich-quick  concerns  and  the  highly  speculative 


STYLE    OF   BONDS  335 

operators.  The  greatest  dangers  to  serial  tim- 
ber bonds  as  floated  at  present  are  excessive 
sinking  funds  and  the  practice  of  passing  on 
abstracts  of  titles  instead  of  going  to  the  orig- 
inal records  at  the  county  seats.  There  will  bo 
defaults  in  some  timber  bonds  now  outstand- 
ing. The  object  of  this  book  is  to  show  the 
bond  dealer  and  investor  how  to  avoid  disaster 
and  to  furnish  him  the  best  available  practical 
information.  The  preceding  mortgages  cover 
their  field  in  a  comprehensive  manner ;  the  next 
chapter  is  devoted  to  actual  circulars  describ- 
ing issues  now  outstanding.  A  comparison  of 
these  documents  will  enable  the  student  to 
choose  the  best  features  from  each.  The 
houses  represented  will  be  glad  to  send  the 
originals  to  anyone  on  request. 


CHAPTER  XII. 

BOND  CIRCULARS. 

The  circulars  given  in  tliis  chapter  condense 
into  small  space  the  salient  points  of  the  is- 
sues they  describe.  The  circular  explains  the 
leading  features  of  the  Trust  deed,  the  nature 
of  the  security,  the  maturities,  the  stumpage, 
the  mills,  the  shipping  facilities,  the  invest- 
ment of  stockholders,  the  financial  condition  of 
the  borrower,  the  condition  of  the  titles,  the 
sinking  fund  and  other  features.  The  circular 
carries  in  brief  form  the  best  selling  arguments 
of  the  issuing  house.  The  circular  covers  the 
soundness,  earning  power  and  desirability  of 
each  issue.  The  circulars  given  here  are  put 
out  by  the  most  reliable  timber  bond  houses 
and  represent  the  best  practice  in  the  business. 

The  chief  criticism  that  can  be  made  against 
them  is  that  they  do  not  state  whether  the  titles 
are  passed  on  from  abstracts  or  from  the 
original  records.  In  order  not  to  change  the 
form  of  a  circular  more  than  necessary  each 
one  is  headed  Exhibit  No.  1  to  22  inclusive, 
and  carries  the  firm  name  at  its  end. 

EXHIBIT  NO.  1. 

Farwell  Trust  Company,  Chicago.  The  subscription  list 
will  open  on  November  14th.  1910.  and  close  on  or  be- 
fore November  17th,  1910.  Price  Brothers  &  Com- 
pany, Limited.  (Incorporated  under  the  Laws  of  the 
Province  of  Quebec.  Canada.)     Capital.  $.5,000,000. 

336 


BOND  CIRCULARS  337 

Offer    of    £1,000,000    five    per    cent,    first    mortgage    bonds, 
forming  part  of  an  authorized  issue  (closed  mortgage) 
of  £1, 232,870  14s.  3d.,  being  the  sterling  equivalent  at 
4.86  2-3  of  $6,000,000.     Dated  1st  November,  1910.    Due 
1st   November,    1940.     Interest    payable    May    1st,    No- 
vember 1st. 
The  bonds  will  be  issued  to  bearer  in  denominations  of 
£200,    £100,   and    £20;    and   are   exchangeable    for   bonds    in 
currency    denominations    of    $1,000,    $500    and    $100.     Ex- 
changes will  be  computed  at  the  fixed  rate  of  $4.86  2-3  per 
£1,  fractions  adjusted  in  scrip.     Bonds  may  be  registered 
as  to  principal. 

The  Bonds  are  redeemable  at  the  company's  option  (as 
to  the  whole  issue)  at  102i/(>  and  accrued  interest,  before 
maturity,  on  November  1st,  1915,  or  on  any  interest  date 
thereafter  on  three  months'  notice.  The  bonds  may  also 
be  drawn  at  the  same  price  on  any  interest  date  by  the 
operation  of  the  sinking  fund.  Principal  and  interest  are 
payable  in  London,  England,  in  sterling,  and  also  in  Mon- 
treal, Quebec  and  New  York  at  the  fixed  rate  of  exchange 
of  $4.86  2-3  to  the  £1. 

Royal  Securities  Corporation,  Limited  (of  Canada), 
offer  for  sale  £1,000,000  of  the  above  bonds,  at  the  price 
of  86  per  cent.,  payable  as  follows,  per  £100  bond: 

£  5  per  cent $  24.33 On  application 

i21      "       "    102.20 On  1st  December,    1910 

£30      "       "    146.00 On  1st  February,    1911 

£30      "       "    146.00 On  1st  May,  1911 


£86@$4.86  2-3 $418.53 

Payment  in  full  may  be  made  on  allotment  under  dis- 
count at  the  rate  of  4  per  cent,  per  annum. 

Subscriptions  for  bonds  to  be  delivered  in  London 
(stamped),  will  be  at  the  price  of  87  and  accrued  interest. 

After  payment  of  the  installment  due  on  allotment, 
Allotment  Letters  will  be  exchangeable  for  Provisional 
Script  Certificates,  bearing  a  coupon  payable  on  May  1st, 
1911,  representing  interest  at  5  per  cent,  to  that  date  from 
the  due  dates  of  the  installments.  Notice  will  be  given 
when  Script  Certificates  may  be  exchanged  for  Definitive 
Bonds  bearing  coupon  due  November  1st,  1911. 

The  accompanying  letter  from  Mr.  William  Price,  the 
President,  gives  particulars  of  the  Company,  of  the  security 
for  the  bonds,  and  the  object  of  the  issue.  The  more  sali- 
ent points  of  the  letter  may  be  summarized  at  follows: 

1.  First  Mortgage  covering  all  fixed  assets  owned  by 
the  company. 


338  TIMBER  BONDS 

2.  The  assets  forming  the  security  for  the  new  bonds 
will  amount  to  about  $13,500,000,  of  which  over  $8,000,000 
represent  freehold  and  leasehold  timber  and  pulpwood 
lands  constituting  a  security  of  constantly  increasing 
value,  owing  to  the  rapid  depletion  of  the  available  sup- 
plies of  timber  in  the  United  States. 

3.  The  average  earnings  for  the  last  three  years 
amount  to  more  than  IM;  times  the  interest  on  the  £1,000,- 
000  of  bonds,  and  the  estimated  earnings  of  the  combined 
operations,  after  the  completion  of  the  paper  mills,  cover 
the  amount  required  to  meet  the  entire  bond  interest  three 
times  over. 

4.  The  past  earnings  have  been  derived  from  careful 
operation  of  the  company's  limits  to  the  extent  of  only 
one-third  of  their  capacity  and  after  the  construction  of 
the  new  mills  the  business  of  the  company  will  require  the 
operation  of  the  limits  to  the  extent  of  only  two-thirds  of 
their  capacity. 

5.  The  new  paper  mill  is  the  development  on  a  larger 
scale  of  the  Jonquiere  paper  business  which  has  been  oper- 
ated profitably  for  several  years  past. 

6.  A  sinking  fund  of  2  per  cent.,  cumulative,  begin- 
ning 1915,  will  redeem  practically  the  entire  issue  before 
maturity. 

The  bonds  are  being  offered  simultaneously  in  Canada 
by  Royal  Securities  Corporation,  Limited,  Montreal  and 
branches,  in  London  by  Parr's  Bank,  Limited. 

PRICE  BROTHERS  &  COMPANY,   LIMITED. 

Quebec,  P.  Q.,  November  1st,  1910. 
Messrs.  Royal  Securities  Comporation,  Limited, 
164  St.  James  Street, 
Montreal,  P.  Q. 

Dear  Sirs: — Referring  to  the  5  per  cent,  first  mortgage 
sinking  fund  gold  bonds  of  this  company,  I  beg  to  sub- 
mit the  following  information: 

The  business  of  Price  Brothers  and  Company  has  been 
in  existence  for  a  century.  It  was  incorporated  under  the 
.Joint  Stock  Companies  Incorporation  Act  of  the  Province 
of  Quebec,  November  28th.  1904  (and  has  since  been 
brought  under  the  Quebec  Companies  Act),  for  the  manu- 
facture and  sale  of  spruce  and  other  lumber,  ground  wood 
pulp,  sulphite-pulp  and  paper.  The  Capital  Stock  of  the 
Company,  authorized  and  fully  paid,  is  $5,000,000,  of  which 
more  than  half  is  owned  by  members  of  the  Price  family. 
The  company  in  itself,  together  with  its  ownership  of  all 
the  assets  or  all  the  issued  capital  stock  of  the  Price- 
Porritt  Pulp  and  Paper  Company   (the  latter  free  from  lia- 


BOND  CIRCUJ^ARS  339 

bilities)  and  of  all  the  bonds  and  the  total  issued  capital 
stock  of  the  Jonquiere  Pulp  Company,  owns  and  controls 
the  following  properties: 

TIMBER  LANDS. 

The  company  owns  and  controls  about  4,136,000  acres 
or  arpents  of  timber  and  pulp-wood  lands,  consisting  of 
about  128,000  acres  or  arpents  of  freehold  and  4,008,000 
acres  of  leasehold  all  well  timbered  and  located  north  and 
south  of  the  St.  Lawrence  and  Sagiienay  Rivers  in  the 
Province  of  Quebec. 

These  lands  contain  over  three  thousand  million  feet 
(board  measure)  of  merchantable  timber  and  over  twenty 
million  cords  of  puli>wood. 

TIMBER  LICENSES. 

The  company  holds  its  licenses  to  cut  timber  from  the 
Government  of  the  Province  of  Quebec  and  these  are 
renewable  by  the  Company  from  year  to  year,  subject  to 
the  Government  regulations. 

For  these  licenses  the  company  pays  an  annual  ground 
rental  of  $5.00  per  square  mile,  or  about  three-quarters  of 
a  cent  per  acre,  and  stumpage  dues  on  all  timber  cut. 
according  to  the  regulations  of  the  Government  of  the 
Province  of  Quebec.  (These  rentals  and  stumpage  dues 
do  not  apply  to  the  freehold  lands  owned  by  the  company.) 

The  timber  limits  are  easily  workable  and  the  prod- 
ucts have  the  home  markets  close  at  hand,  besides  being 
particularly  well-situated  to  meet  the  demands  of  the 
British,  United  States  and  other  foreign  markets. 

The  danger  of  fire  is  reduced  to  a  minimum  owing  to  the 
scattered  nature  of  the  different  properties,  the  heavy 
rainfall  and  the  efficient  system  of  fire  protection  now  in 
vogue  in  the  Province  of  Quebec. 

The  supply  of  timber  may  be  deemed  practically  inex- 
haustible as  the  large  area  of  the  property  permits  of  a 
careful  system  of  conservation,  so  that  there  is  a  constant 
renewal  of  the  growth  of  merchantable  timber,  and  further 
the  Government  regulations  limit  the  size  of  trees  to  be 
cut. 

At  present  the  company  limits  are  being  worked  to  the 
extent  of  only  one-third  of  their  capacity.  The  construc- 
tion of  the  proposed  Paper  Mills  will  necessitate  the  work- 
ing of  about  two-thirds  of  the  limits. 

EXISTING  MILLS. 
Nine  saw  mills  at  Batiscan,  Montmagny,  Cap  St.  Ignace, 
Trois  Saumons,  Rimouski,  Matane,  Salmon  Lake,  St.  Mar- 


840  TIMBER  BONDS 

guerite,  and  Grand  Bay,  with  a  combined  capacity  of  about 
1,000,000  feet  (board  measure)  per  day,  give  the  company, 
during  the  ordinary  operating  season  of  six  months,  an 
annual  capacity  of  about  100,000,000  feet. 

Three  shingle  mills  at  Rimouski,  Matane,  and  Salmon 
Lake,  with  a  combined  capacity  of  600,000  shingles  per  day. 

One  rossing  mill  at  L'Anse  an  Clieval. 

One  ground-wood  pulp  mill  at  Rimouski,  with  a  capac- 
ity of  7,500  tons  of  pulp  per  annum,  which  is  sold  prin- 
cipally to  paper  makers  in  the  United  States. 

Cardboard  and  paper  mill  at  Jonquiere,  including  ros- 
sing mill,  ground  wood  mill  and  sulphite  pulp  mill,  with 
annual  capacity  of  8,000  tons  of  ground  wood  pulp,  2,600 
tons  of  sulphite  pulp,  together  producing  6,000  tons  of  card- 
board and  4,000  tons  of  paper. 

Dwelling  houses  for  employes,  together  with  ware- 
houses, mill  sites,  sorting  sheds,  machine  shops,  water 
powere,  electric  light  plants,  railroad  sidings,  lumber 
yards,  roads,  wharves,  piers,  booms,  dams  and  other  river 
improvements,  river  tackle,  tugs,  lighters  and  other  craft 
and  logging  camp  equipment,  and  in  fact,  all  appliances 
necessary  to  make  the  properties  complete  and  up-to-ate. 

Insurance.  In  order  to  further  insure  the  company 
against  possible  loss  by  forest  fires,  the  timber  limits 
have  been  divided  into  fifteen  groups  and  fifteen  policies 
have  been  effected  at  Lloyds  providing  against  any  loss  in 
excess  of  £15,000  in  each  group  of  limits. 

The  company  also  insures  its  mills  and  stock  in 
amounts  which  vary  according  to  the  stock  in  hand. 

NEW  PULP  AND  PAPER  MILLS. 

The  company  will  at  once  proceed  with  the  construc- 
tion of  new  pulp  and  paper  mills  (with  a  daily  capacity 
of  150  tons  of  newspaper),  together  with  a  concrete  dam 
and  hydraulic  development  of  14,000  h.  p.  under  a  head  of 
280  feet,  which  will  be  more  than  sufficient  for  the  opera- 
tions of  the  mills. 

The  buildings  will  be  of  cement  and  steel  construction 
throughout. 

The  available  water-power  will  permit  of  substantial 
extensions  to  the  capacity  of  the  mills,  and  the  buildings 
will  be  constructed  with  this  end  in  view. 

The  combined  capacity  of  the  new  pulp  and  paper 
mills  when  constructed  added  to  that  of  the  .Jonquiere 
Pulp  Company  will  be  one  of  the  largest  in  the  Dominion 
of  Canada. 

The  mill  site  is  in  the  heart  of  the  company's  timber 
limits  on  the  Au  Sable  River,  on  which  river,  a  short  dis- 


BOND  CIRCULARS  341 

tance  from  the  new  mills,  the  Jonquiere  Company  has  for 
the  past  ten  years  been  manufacturing  pulp  and,  later, 
cardboard  and  paper.  Conditions  of  manufacture,  quality 
of  wood  and  extent  of  water-power,  confirmed  by  four 
years'  actual  records,  are  therefore  clearly  established. 
Construction  and  operation  will  be  carried  on  under  the 
supervision  of  Mr.  O.  A.  Porritt,  the  company's  manager 
at  Jonquiere,  and  the  undertaking  may  be  regarded  as 
perpetuating,  on  a  much  larger  scale,  the  Jonquiere  plant 
which  to  the  extent  of  its  capacity  has  been  entirely  sat- 
isfactory. 

Mr.  Geo.  F.  Hardy,  of  New  York,  consulting  engineer 
and  paper  mill  expert,  reports  as  follows: 

"In  brief,  I  would  say,  in  regard  to  the  location  of  the 
mill  at  Au  Sable  Falls,  that  it  offers,  in  my  opinion,  an 
exceptionally  good  opportunity  for  the  manufacture  of 
newspaper,  and  that  I  know  of  no  better  opportunity  to- 
day in  the  Dominion." 

DESCRIPTION  OF  BONDS. 

The  bonds  for  £1,000,000  sterling  form  part  of  an  issue 
limited  to  $6,000,000  gold  or  its  equivalent  in  sterling 
and  are  secured  by  a  fixed  and  specific  first  mortgage  and 
charge  upon  all  the  present  immovable  property  of  the 
company  and  by  all  the  issued  shares  of  the  Price-Porritt 
Pulp  and  Paper  Company  or  by  all  the  immovable  property 
presently  owned  by  that  company,  and  by  all  the  issued 
shares  and  all  the  outstanding  bonds  of  the  Jonquiere 
Pulp  Company;  and  will  be  similarly  secured  upon  all 
future  immovable  property  acquired  by  the  company  from 
the  proceeds  of  the  bonds  and  by  a  floating  charge  upon  all 
the  other  assets  of  the  company  which  include  current 
assets,  trade  marks,  etc. 

SINKING  FUND. 

A  cumulative  sinking  fund  of  2  per  cent,  per  annum 
will  commence  on  May  1st,  1915;  and  annually  thereafter 
a  cash  sinking  fund  of  2  per  cent,  of  all  bonds  outstanding, 
plus  an  amount  equal  to  the  annual  interest  on  all  bonds 
redeemed  through  the  sinking  fund  is  to  be  paid  to  the 
trustee,  and  used  to  purchase  and  retire  bonds  at  not 
exceeding  IO2I2  per  cent,  and  accrued  interest,  or  to  call 
bonds  at  that  price  if  not  so  purchasable. 

The  sinking  fund  will  redeem  practically  the  entire  is- 
sue of  bonds  before  maturity. 

TITLES  AND  MORTGAGES. 
The  titles   to  all  the  properties   covered  by  this   mort- 


342  TIMBER  BONDS 

gage  have  been  examined  and  approved  by  Messrs.  Pent- 
land,  Stuart  &  Brodie,  of  Quebec,  who  certify  that  all  the 
said  properties  are  free  and  clear  of  all  liens,  charges, 
encumbrances,  or  indebtedness. 

The  titles,  form  of  the  deeds  of  conveyance,  mortgage 
trust  deed  and  bonds  have  been  approved  by  A.  J.  Brown, 
K.  C,  of  Messrs.  Brown,  Montgomery  and  McMichael  of 
Montreal,  P.  Q. 

ASSETS. 

Messrs.  James  D.  Lacey  and  Company,  of  Chicago,  the 
well  known  timber  valuers,  under  date  of  19th  July,  1910, 
place  the  following  valuation  on  the  properties: 
About  3,793,000  acres  of  leasehold,   and  128,000 
acres  or  arpents  of  freehold  timber  and  pulp- 
wood  lands  found  to  contain  about  3,149,500,- 
000  feet  (board  measure)  of  timber,  and  over 
20,665,000  cords  of  pulpwood $8,085,875 

Nine  saw  mills  at  Batiscan,  Montmagny,  Cap  St. 
Ignace,  Trois  Saumons,  Rimouski,  Matane,  Sal- 
mon Lake,  St.  Marguerite,  and  Grand  Bay .... 

Three  shingle  mills  at  Rimouski,  Matane,  and 
Salmon  Lake  

The  Price-Porritt  Pulp  Mills  at  Rimouski 

Sundry  real  estate,  wharves,  water  powers,  and 
other  properties  at  Chicoutimi,  L'Anse,  St. 
Jean,  Metis,  St.  Catherines  Bay,  Petit  Sague- 
nay,   etc 842,500 

Jonquiere  Pulp  Company:  About  215,000  acres 
leasehold  timber  limits;  saw  mill,  chemical 
pulp  mill,  ground  wood  pulp  mill  and  card- 
board and  paper  mill;  three  water  powers,  two 
of  which  are  developed  to  produce  3,700  h.  p. 
fthe  third  of  14,000  h.  p.  mentioned  above, 
will  be  developed  in  connection  with  the  new 
pulp  and  paper  mills) ;  electric  power  plant 
supplying  light  and  power  to  the  town  of  Jon- 
quiere and  the  Jonquiere  Mills;  houses,  build- 
ings, piers,  booms,  and  all  other  accessories 
necessary  to  a  pulp,  paper  and  lumber  business.     1,000,000 


$9,928,375 
To  the  above  will  be  added  the  net  liquid  assets 
of  the  company  in  excess  of  current  liabilities, 
(less  the  amount  required  to  redeem  the  out- 
standing bonds,)  which  will  be  used  for  the 
purchase  of  all  the  bonds  of  the  Jonquiere 
Pulp  Company,  amounting  to  $190,000,  for  the 


BOND  CIRCULARS  343 

construction  of  new  pulp  and  papei-  mills,  of  a 
new  saw  mill  and  for  working  capital,  say  not 
less  than   3,600,000 


$13,528,375 


Messrs.  James  D.  Lacey  and  Company  report  further: 
"The  limits  and  freeholds  controlled  by  this  company 
are  essentially  spruce,  balsam,  cedar  and  pulp  wood  prop- 
ositions, and  they  are  unquestionably  among  the  best  tim- 
bered and  most  desirably  located  properties  in  the  Prov- 
ince of  Quebec.  Further,  this  company  is  in  a  most  envi- 
able position  in  regard  to  the  control  of  the  numerous 
driveable  streams  penetrating  their  vast  holdings.  Valu- 
able concessions,  water  powers  and  other  important  rights 
have  been  secured,  and  a  more  practical  system  of  boom- 
age,  dams  and  other  river  improvements  for  the  safety  and 
€iuick  delivery  of  their  logs  during  the  short  driving  sea- 
sons would  be  difficult  to  devise." 

SALES. 

The  company  is  the  largest  manufacturer  of  spruce 
lumber  in  Canada.  Almost  the  entire  output  has  been 
sold  in  the  European,  United  States  and  South  American 
markets. 

The  average  sales  during  the  last  five  years  have  been 
about  72,000,000  feet  of  timber,  66,000,000  shingles,  and 
240,000  ties  per  annum. 

EARNINGS. 

The  average  yearly  net  earnings  of  Price  Brothers  and 
Company  for  the  five  years  from  March  31st,  1899,  to 
March  31st,  1904,  and  for  the  five  years  from  November 
30th.  1904,  to  November  30th,  1909,  as  audited  and  certi- 
fied by  Geo.  Creak,  C.  A.,  including  those  of  the  Jonquiere 
Pulp  Company  and  Price-Porritt  Pulp  and  Paper  Company 
for  the  three  years  from  November  30th,  1906  to  November 
oOth.  1909,  as  audited  and  certified  by  Messrs.  Creak, 
Gushing  and  Hodgson,  C.  A.,  amount  to  $336,680.79. 

The  earnings  of  the  three  companies  as  audited  and 
certified  by  the  above  accountants  for  the  last  three  years 
ending  November  30th,  1909,  after  charging  all  manu- 
facturing, selling  and  general  expenses,  including  main- 
tenance and  depreciation  of  the  various  plants  (no  other 
provision  being  necessary  in  view  of  the  low  book  values 
of  the  properties),  but  before  charging  interest  on  bonds 
and  loans,  have  been  as  follows: 


344  TIMBER  BONDS 

1907  1908  1909 

Price    Brothers   and 

Company.   Limited. .  .$391,141.73     $224,082.93     $276,283.68 
The      Jonquiere      Pulp 

Company    65,823.76         45,993.10         88,167.20 

Price-Porritt    Pulp    and 

Paper  Company  17,894.66         13,452.83         34,316.09 


$474,860.15     $283,528.86     $398,766.97 

The  average  yearly  earnings  of  the  above  companies 
for  the  past  three  years  thus  amount  to  $385,718.66,  al- 
though 1908  was  a  bad  year  resulting  from  general  indus- 
trial depression. 

The  timber  limits  have  been  worked  to  only  one-third 
of  their  capacity,  while  taxes  and  dues  on  the  whole  of 
the  property  (including  the  two-thirds  unworked)  have 
been  paid  to  the  Government,  and  charged  against  the 
earnings. 

ESTIMATED  PROFITS. 

It  is  estimated  that  the  earnings  of  the  above  com- 
panies for  the  fiscal  year  of  1910  will  amount  to  $400,000 
and  that  the  new  mills,  including  a  new  saw  mill,  when 
completed,  will  produce  an  additional  profit  amounting  to 
about  $500,000.  These  estimated  earnings  of  $900,000  are 
three  times  the  interest  charges  on  the  total  issue  of 
$6,000,000  bonds. 

Yours  faithfully, 
PRICE  BROTHERS  &  COMPANY,  LTD., 
(Signed)         William   Price,  President. 

Applications  must  be  made  on  the  accompanying  form 
and  forwarded,  with  a  cheque  for  the  amount  due  on 
application,  to  Royal  Securities  Corporation,  Limited,  75 
Lombard  Street,  London.  E.  C.  If  only  a  portion  of  the 
amount  applied  for  be  allotted,  the  balance  of  the  deposit 
will  be  applied  towards  the  payment  due  1st  December, 
1910.  Interest  at  the  rate  of  5  per  cent,  per  annum  will 
be  charged  on  all  installments  not  paid  on  the  due  dates. 
Failure  to  pay  any  installment  when  due  will  render  the 
amount  previously  paid  liable  to  forfeiture. 

Application  will  be  made  in  due  course  to  the  Commit- 
tee of  the  London  Stock  Exchange  for  an  official  quotation 
of  the  bonds. 

Holders  of  existing  6  per  cent,  bonds  of  Price  BrotJiers 
&  Company,  Limited,  may  deliver  their  bonds  at  105  per 
cent,  and  interest  on  account  of  payment  for  allotments. 


BOND  CIRCULARS  345 

DIRECTORS  AND  OFFICERS. 

William  Price,  M.  P.,  Quebec.  President  of  the  Company, 
Vice-President,  Union  Bank  of  Canada. 

Geo.  H.  Thomson,  Quebec,  Vice-President  of  the  Com- 
pany. Director,  Union  Bank  of  Canada. 

Edward  G.  Price,  London.  Director,  Price  &  Pierce, 
Limited. 

Wm.  S.  Hofstra,  New  York.  Director,  Diamond  Match 
Company. 

Ion  Hamilton  Benn,  M.  P.,  London,  Director,  Price  & 
Pierce,  Limited,  Director,  Canadian  Car  and  Foundry 
Company,  Limited. 

Gustavus  G.  Stuart.  K.  C,  Quebec,  Director,  Quebec 
Bank. 

H.  S.  Holt,  Montreal,  President,  Royal  Bank  of  Canada, 
Montreal  Light.  Heat  and  Power  Company. 

Granger  Farwell.  Chicago.  President.  Farwell  Trust 
Company. 

James  Redmond.  Montreal.  Director,  Royal  Bank  of 
Canada. 

Henry  E.  Price.  Quebec.  Secretary-Treasurer  of  the 
Company. 

HEAD  OFFICE— Quebec  Canada. 

BANKERS— Bank  of  Montreal.     Union  Bank  of  Canada. 

TRUSTEES— Montreal  Trust  Company. 

TRUSTEE  FOR  SINKING  FUND— Trustees.  Executors  & 
Securities  Insurance  Corporation.  Limited. 

AUDITORS— Messrs.  Creak,  Gushing  &  Hodgson.  C.  A.,  Mon- 
treal. Messrs.  Geo.  A.  Touche  &  Company,  London. 
England. 

ROYAL  SECURITIES  CORPORATION.  LIMITED. 

164  St.  .lames  Street,  Montreal. 

Toronto  Halifax.  Quebec.  London,  England. 

Subscriptions  will  be  received,  in  behalf  of  Royal  Securities 

Corporation.  Ltd.,  by 

FARWELL  TRUST  COMPANY, 

226  LaSalle  Street, 

Chicago. 

EXHIBIT  NO.   2. 

McCOY  &  COMPANY,  10-5  S.  LaSalle  St.,  Chicago. 

GUARANTEED    FIRST   MORTGAGE   TIMBER   LAND 

BONDS. 
An  issue  of  Short  Time  First   Mortgage  Bonds  which  are 
the    direct    obligation    of    one    of    the    largest    timber- 


346  TIMBER  BONDS 

holding  and  operating  lumber  companies  in  the 
United  States.  Principal  and  interest  unconditionally 
guaranteed  by  William  T.  Joyce  Company,  whose  net 
assets,  exclusive  of  any  interests  in  the  Tremont 
Lumber  Company,  are  represented  to  be  over  twice 
the  amount  of  this  present  bond  issue.  The  mortgage 
security  consists  of  about  170,000  acres  of  virgin  pine 
timber  lands,  of  which  70  per  cent  are  owned  in  fee 
simple,  estimated  to  contain  1,238,061,343  feet  of  virgin 
pine  and  other  timber,  with  three  mill  plants,  etc.,  con- 
servatively worth  $7,500,000,  or  three  times  the  amount 
of  the  present  bond  issue. 
We  offer,  subject  to  prior  sale,  at  par  and  interest: 
$1,500,000  First  Mortgage  6  per  cent.  Serial  Gold 
Bonds  of  Tremont  Lumber  Company,  Winnfield,  La.. 
Capital  and  surplus,  $6,871,531.93. 
Officers  and  Directors:  Samuel  J.  Carpenter,  President, 
Winnfield,  La.;  David  G.  Joyce,  Vice-President,  Chi- 
cago, 111.;  James  Stanley  Joyce,  Sec'y  and  Treas., 
Chicago,  111.;  Thomas  Hume,  Muskegon,  Mich.;  Eugene 
J.  Carpenter,  Minneapolis,  Minn. 
Principal  and  interest  unconditionally  guaranteed  by  Will- 
iam T.  Joyce  Company. 
Dated  November  1,  1910.  Coupon  bonds,  $1,000.  with 
privilege  of  registration  as  to  principal.  Interest  pay- 
able semi-annually  (May  1st  and  November  1st).  Call- 
able May  1,  1911,  or  on  any  interest  date  thereafter, 
at  102  and  interest,  upon  60  days'  previous  notice  to 
the  trustee.  Bonds  offered  mature  as  follows: 
$150,000  May  1, 1911  $150,000  Nov.  1, 1913 

150,000  Nov.  1, 1911  150,000  May  1, 1914 

150,000  May  1, 1912  150,000  Nov.  1, 1914 

150,000  Nov.  1, 1912  150,000  May  1, 1915 

150,000  May  1, 1913  150,000  Nov.  1, 1915 

Principal  and  interest  payable  at  Interstate  Trust  &  Bank- 
ing  Company,   New   Orleans,    La.,    Trustee,   or   Conti- 
nental and  Commercial  National  Bank,  Chicago,  111. 
The  Southern  pine  forests  today  furnish  the  raw  mate- 
rial for  over  30  per  cent,  of  the  entire  lumber  cut  of  the 
United  States.     The  drain  upon  them  has  been  such  that 
the   United    States   Forestry    Service   estimates   their    con- 
sumption   within    the    next    twenty    years.     The   value    of 
Southern  pine  timber  lands  is  constantly  increasing  with 
the  depletion  of  the  existing  supply.     Louisiana  pine  tim- 
ber is  not  subject  to  fire  hazard  owing  to  freedom  from 
undergrowth  and  height  of  trees. 

The  timber  under  this  mortgage  was  cruised  in  detail 
by  Messrs.  James  D.  Lacey  &  Company,  Chicago,  111.,  who, 


BOND   CIRCULARS  347 

in  their  report,  advise  us  that  in  respect  to  quality  of  tim- 
ber, accessibility  and  economies  of  logging,  it  is  one  of  the 
best  timber  properties  they  have  ever  examined  in  the 
South. 

This  Mortgage  to  the  Interstate  Trust  &  Banking  Com- 
pany, New  Orleans,  La.,  Trustee,  is  a  first  lien  on  about 
170,000  acres  of  virgin  timber  lands  (70  per  cent,  owned 
in  fee),  exceptionally  well  grouped,  heavily  timbered  with 
long-leaf  yellow  pine  and  hardwoods,  located  in  Jackson, 
Ouachita,  Caldwell,  Winn,  Grant  and  La  Salle  Parishes, 
Louisiana  (see  map  attached  for  location)  and  three  mod- 
ern mill  properties. 

TIMBER  ESTIMATES. 
The  timber  properties  under  this  mortgage  have  been 
cruised  and  estimated  by  Messrs.  James  D.  Lacey  &  Com- 
pany, Public  Estimators,  Chicago,  who  estimate  that  on  the 
approximately  170,000  acres  of  land  above  mentioned  and 
examined  by  them,  there  is  contained  the  following  kinds 
and  amount  of  timber,  namely: 

Pine     1,167,522,343  ft. 

Hardwoods   70.539,000  ft. 

Total  timber   1,238,061,343  ft. 

They  also  state  that  from  their  examination  of  the 
properties,  they  do  not  hesitate  to  say  that  in  respect  to 
quality  of  timber,  accessibility  and  economies  of  logging, 
it  is  among  the  best  timber  properties  they  have  ever  ex- 
amined in  the  South. 

MANUFACTURING  PLANTS. 

The  three  mills  of  the  company  are  located  and  equipped 
as  follows: 

Eros — A  double-band  saw  mill,  steam  dry  kilns  and 
planing  mill,  with  a  daily  10-hour  capacity  of  100,000  ft. 

Jonesboro — A  double-band  saw  mil],  steam  dry  kilns, 
planing  mills,  sheds,  etc.,  with  a  daily  10-hour  capacity  of 
100,000  ft. 

Rochelle— Two  double-cutting  Taand  mills  and  gang, 
steam  dry  kilns,  planing  mills  and  shed  room,  with  a 
daily  10-hour  capacity  of  about  175,000  ft. 

These  plants  are  situated  ou  the  line  of  the  Tremout 
&  Gulf  Railway,  which  connects  with  the  following  trunk 
lines: 

The  Vicksburg,  Shreveport  &  Pacific  Ry.,  at  Tremont, 
La. 

The  Chicago,  Rock  Island  &  Pacific  Ry.,  at  Jonesboro, 
Dodson  and  Winnfield,  La. 


348  TIMBER  BONDS 

The  Louisiana  &  Arkansas  and  the  Louisiana  Railway 
&  Navigation  Company,  at  Winnfield,  La. 

The  St.  Louis,  Iron  Mountain  &  Southern  Ry.,  at  Ro- 
chelle,  La. 

Thus  giving  unusual  facilities  for  reaching  all  lumber- 
consuming  territory  under  favorable  freight  rates. 

VALUE  OF  PROPERTIES. 

The  market  value  of  the  timber  under  the  mortgage  is 
conservatively  estimated  at  upwards  of  $6,000,000  and  the 
mill  properties  and  appurtenances  at  $1,500,000,  making  a 
reasonable  valuation  of  the  combined  properties  under  this 
mortgage  of  $7,500,000.  These  estimates  do  not  take  into 
account  the  worth  of  the  land  owned  in  fee,  which  adds 
considerably  to  the  value  of  the  security  under  the  mort- 
gage. 

PURPOSE  OF  BOND  ISSUE. 

The  total  authorized  bond  issue  is  $4,000,000,  of  which 
$2,500,000  are  presently  to  be  issued.  The  remainder, 
$1,500,000,  can  only  be  issued  for  the  purchase  of  addi- 
tional timber  lands  or  timber  situated  in  the  Parishes  of 
Jackson,  Winn,  Caldwell,  La  Salle,  Grant,  Ouachita,  Lin- 
coln. Bienville  and  Catahoula,  in  the  State  of  Louisiana, 
adjacent  to  or  near  the  above  described  lands,  at  a  rate  of 
not  exceeding  $2.00  per  thousand  feet,  board  measure,  as 
shown  by  the  timber  estimates  of  Messrs.  James  D.  Lacey 
&  Company,  or  such  other  estimators  as  shall  be  satisfac- 
tory to  the  Trustee.  At  least  seventy  per  cent.  (70%)  of 
such  additional  timber  held  under  this  mortgage  must 
be  on  lands  owned  in  fee  simple. 

Of  the  $2,500,000  bonds  presently  to  be  issued,  $1,500,- 
000  are  the  bonds  offered  herein,  the  remaining  $1,000,000 
are  held  in  escrow  by  the  company  pending  its  future  re- 
quirements. From  the  proceeds  of  the  sale  of  the  present 
issue  of  bonds  all  the  floating  indebtedness  of  the  company 
will  be  retired  and  additional  working  capital   provided. 

TITLES  AND   MORTOAGE. 

The  titles  to  the  lands  anri  property  covered  by  this 
mortgage  have  been  carefully  examined  and  certified  by 
our  counsel,  Messrs.  Adams  &  Candee,  Chicago,  under 
whose  legal  direction  the  mortgage  and  bonds  were  pre- 
pared. The  form  of  bond  and  mortgage,  and  execution 
thereof,  have  also  been  approved  by  Messrs.  Howe,  Fanner, 
Spencer  &  Cocke,  New  Orleans,  attorneys  for  the  Trustee. 


BOND  CIRCULARS  349 

SINKING  FUND. 

The  mortgage  provides  uuder  careful  restrictions  that 
before  the  company  can  in  any  way  have  access  to  any  of 
the  timber  covered  by  this  Ixind  issue,  it  must  deposit  in 
advance  with  the  Trustee  $3.00  per  thousand  feet,  based 
on  the  estimates  of  Messrs.  James  D.  Lacey  &  Company, 
filed  with  the  Trustee.  This  Sinking  Fund  applies  to  the 
payment  of  the  principal  only,  and  should  the  deposits 
under  this  Sinlcing  Fund  exceed  the  amount  of  bonds 
maturing  in  any  year,  the  Trustee  is  required  to  purchase 
bonds  of  this  issue  which  may  be  offered  at  not  exceeding 
102  and  interest,  or  at  the  request  of  the  company  it  may 
call  bonds  at  102  and  interest  in  amount  sufficient  to 
exhaust  the  surplus  monies  in  hand. 

GUARANTORS. 
These  bonds,  principal  and  interest,  are  unconditionally 
guaranteed  by  William  T.  Joyce  Company,  whose  net 
assets,  exclusive  of  their  interest  directly  or  indirectly  in 
this  property,  are  represented  to  be  over  twice  the  amount 
of  the  present  bond  issue. 

BUSINESS  OF  THE  COMPANY. 
The  Tremont  Lumber  Company  is  a  consolidation  of 
the  South  Arkansas  Lumber  Company,  Winn  Parish  Lum- 
ber Company  and  the  Louisiana  Lumber  Company,  Ltd., 
and  until  recently  was  purely  a  manufacturing  company. 
It  now  directly  owns  approximately  1,400,000,000  feet  of 
virgin  pine  timber  in  the  State  of  Louisiana,  which,  ac- 
cording to  Messrs.  Lacey  &  Company's  report,  may  be  con- 
sidered one  of  the  finest  bodies  of  pine  in  the  South  and  is 
especially  attractive  on  account  of  the  cheap  logging  cost. 
The  company  sells  its  output  through  its  sales  department 
directly  to  retail  lumber  dealers  and  railroads,  and  not 
through  jobbers.  The  capacity  of  the  three  plants  now  in 
operation  will  approximate  150,000,000  feet  per  year.  At 
the  Rochelle  plant  the  entire  product  of  the  mill  is  kiln 
dried;  all  of  the  stock  is  carried  under  cover,  there  being 
no  lumber  yards  nor  lumber  piled  outside.  The  lumber  is 
transported  from  the  mill  to  the  sheds,  planing  mill  and 
the  loading  tracks  by  a  newly  erected  monorail  system. 
This  apparatus  was  installed  at  a  very  large  cost,  but  the 
economy  effected  in  handling  the  lumber  justifies  the 
expenditure.  The  railroad  and  logging  equipment  at  all 
the  mills  is  modern  and  eflficient;  the  number  of  camps 
operating  is  three,  one  for  each  mill. 


350  TIMBER  BONDS 

FIRE  HAZARD. 

Timber  located  in  the  southern  states  has  never  been 
destroyed  by  fire.  This  statement  can  be  verified  by  lum- 
bermen and  other  persons  familiar  with  southern  timber. 
Any  serious  damage  by  fire  is  practically  impossible  be- 
cause of  the  absence  of  undergrowth  and  the  height  of 
the  tree.s.  This  is  one  of  the  most  Important  facts  in  con- 
nection with  this  security. 

We  have  checked  the  security  offered  for  this  loan  in 
our  iLsual  careful  manner  and  recommend  these  bonds  for 
investment.  Telegraphic  orders  may  be  sent  at  our  ex- 
pense and  bonds  will  be  delivered  to  any  responsible  bank, 
expressage  prepaid,  payable  in  Chicago'  or  New  York  ex- 
change. 

All  statements  herein  are  official  or  based  on  informa- 
tion which  we  regard  as  reliable,  and  while  we  do  not 
guarantee  them,  they  are  the  data  upon  which  we  have 
acted  in  the  purchase  of  these  securities. 

Bonds  are  offered  subject  to  prior  sale  and  advance  in 
price. 

McCOY  &  COMPANY, 

105  So.  LaSalle  St., 

Chicago. 

EXHIBIT   NO.  .3. 

Lyon,  Gary  &  Company.  Lumbermen  and  Bankers,  Chicago. 

$1,500,000    Linn    &   Lane   Timber    Company    (operating    in 
Oregon)   6  per  cent.  First  :\Iortgage  Serial  Gold  Bonds. 
Dated   June    6.   1910.     Due   semi-annually    Dec.   1,    1911,  to 
June   1.   1927.     Redeemable   at   1024    and   interest,'  in 
whole  or  in  part,  on  any  interest  day,  on  ninety  days' 
published    notice.     Principal    and    interest    payable    in 
Chicago    June    1st    and    Dec.    1st.     Coupon    bonds    of 
$1,000  and   $500  each;    may  be  registered  as  to  prin- 
cipal.    Union   Trust   Company  of  Chicago,   and   F.   H. 
Rawson,  Chicago,  Trustees. 
P>rlncipal    and    interest    guaranteed    by    endorsement    bv 
Charles  A.  Smith.  INIinneapolis.  :Minu. 
For   fuller   particulars    regarding   these   bonds   and   the 
property  under  the   mortgage,   we   refer  to  the  letter  ad- 
dressed to  us  by  the  guarantor.  Mr.  Chas.  A.  Smith,  printed 
on  the  following  pages. 

Copies  of  the  opinions  of  the  timber  experts  and  of  our 
attorneys  covering  the  validity  of  the  bonds  and  the  lien 
of  the  mortgage  on  the  lands  and  timber,  may  be  seen  on 
application  at  our  office. 


BOND  CIRCULARS  351 

The  security  for  the  bonds  may  be  summarized  from 
these  letters  and  opinions  as  follows: 

1.  First  mortgage  lien  on  approximately  70,000  acres 
of  virgin  timber  lands  and  timber  in  Linn,  Lane,  Coos, 
Curry,  Douglas  and  Lincoln  counties,  all  being  located  In 
the  western  part  of  the  State  of  Oregon,  estimated  to  con- 
tain over  4,300,000,000  feet  of  fir,  cedar  and  other  timber, 
including  some  pine  and  hemlock. 

2.  Our  experts  state  that  the  timber  may  be  con- 
servatively valued  at  $1.00  per  thousand  feet,  or  $4,300,000 
in  all,  while  their  estimates  show  that  the  bonds,  amount- 
ing to  $1,500,000,  are  issued  at  the  low  rate  of  34%  cents 
per  thousand  feet. 

3.  Secured  also  by  first  mortgage  lien  on  a  modern 
lumber  manufacturing  plant  valued  at  $200,000,  and  having 
a  capacity  of  150,000  feet  for  each  ten-hour  day. 

4.  The  management  is  in  the  hands  of  successful  and 
experienced  lumbermen,  the  guarantor  being  reputed  to 
be  worth  many  times  the  amount  of  the  bond  issue. 

5.  The  margin  of  security  increases  as  the  serial  in- 
stallments are  paid  at  the  ratio  of  seven  to  one,  and  the 
redemption  fund  will  retire  all  the  bonds  before  15  per 
cent  of  the  timber  is  cut. 

6.  Under  the  trust  deed  the  trustee  must  first  receive 
payment  before  any  timber  may  be  cut  or  released  from 
the  lien  of  the  mortgage,  payments  for  timber  to  be  cut, 
being  at  the  rate  of  $2.50  per  thousand  feet.  Contracts 
have  already  been  executed  providing  for  the  sale  of  at 
least  30,000,000  feet  of  timber  per  annum  at  $3.00  per 
thousand  feet  for  fir  and  $6.00  per  thousand  feet  for  cedar 
with  a  rising  scale  of  prices. 

7.  Frequent  inspection  of  the  property  is  arranged  for 
at  the  expense  of  the  borrower.  The  valuations,  titles  and 
legal  matters  have  been  passed  on  by  well  known  authori- 
ties. 

8.  The  fire  hazard  is  minimized:  By  the  separation 
of  the  property  into  two  tracts  of  nearly  equal  value;  by 
the  location  of  the  timber  in  the  fog  laden  counties  on  the 
Pacific  Coast  and  west  of  the  Cascade  Mountains;  by 
efficient  fire  patrols.  Government  and  private,  and  by  the 
provisions  of  the  mortgage  for  the  payment  to  the  Trustee 
at  the  rate  of  $1.00  per  thousand  feet  for  timber  dam- 
aged for  any  cause,  with  $1.50  per  thousand  feet  addi- 
tional for  any  such  timber  cut. 

9.  The  increasing  scarcity  of  timber  has  resulted  in  a 
constant  enhancement  In  value. 

Price  on  application. 


352 


TIMBER  BONDS 


LINN  &  LANE  TIMBER  COMPANY 

(Operating  in   Oregon) 

First  Mortgage  Serial  6%   Gold  Bonds 

Dated  June  6,  1910.       Due  serially,  maturities  as  below. 

Interest  payable  in  Chicago  June  1st  and 

December  1st. 

Principal  and  interest  guaranteed  by  Endorsement  by 

CHARLES   A.   SMITH,    MINNEAPOLIS,   MINN. 


MATURITIES. 


$25,000 
25,000 
25,000 
25,000 
25,000 
25,000 
50,000 
50,000 
50,000 
50,000 
50,000 


Dec. 

June 

Dec. 

June 

Dec. 

June 

Dec. 

June 

Dec. 

June 

Dec. 


1,1911 
1,1912 
1,1912 
1,1913 
1,1913 
1,1914 
1, 1914 
1,  1915 
1,1915 
1,1916 
1,1916 


$50,000 
50,000 
50,000 
50,000 
50,000 
50,000 
50,000 
50,000 
50,000 
50,000 
50,000 


June  1, 
Dec.  1, 
June  1, 
Dec.  1, 
June  1, 
Dec.  1, 
June  1, 
Dec.  1, 
June  1, 
Dec.  1, 
June  1, 


1917 
1917 
1918 
1918 
1919 
1919 
1920 
1920 
1921 
1921 
1922 


$50,000 
50,000 
50,000 
50,000 
50,000 
50,000 
50,000 
50,000 
75,000 
75,000 


Dec. 

June 

Dec. 

June 

Dec. 

June 

Dec. 

June 

Dec. 

June 


1,1922 
1,1923 
1,1923 
1, 1924 

1. 1924 

1. 1925 
1,  1925 

1. 1926 
1,1926 

1. 1927 


The  following  letter  has  been  addressed  to  us  by  Mr. 
Chas.  A.   Smith: 

Dear  Sirs: — 

In  compliance  with  your  request  for  information  rela- 
tive to  the  $1,500,000  6  per  cent.  First  Mortgage  Gold  Bonds 
of  the  Linn  &  Lane  Timber  Company,  recently  sold  you,  I 
submit  the  following: 

SECURITY. 

The  Linn  &  Lane  Timber  Company  was  organized  as  a 
timber  investment  company,  and  now  owns  free  of  any 
incumbrance,  other  than  the  first  mortgage  bond  issue,  at 
least  70,000  acres  of  timber  land  together  with  3,500  acres 
upon  which  the  timber  only  is  owned.  Of  this  acreage 
owned  in  fee,  approximately  35,000  acres  are  located  in 
Coos,  Douglas,  Curry  and  Lincoln  Counties,  and  approxi- 
mately 35,000  acres  in  Linn  and  Lane  Counties.  The 
above  tracts  of  land  are  well  located  for  economical  opera- 
tion and  have  stood  a  severe  examination  as  to  quality 
and  quantity.  All  of  this  property,  including  the  timber 
mentioned  above,  is  covered  by  the  first  mortgage  Hen  of 
the  bonds  sold  to  you.  The  lands  contain,  according  to 
my  own  estimate  and  belief,  in  excess  of  5,000,000,000  feet 
of  timber,  the  largest  part  of  which  is  fir.  I  value  the 
whole  property  at  not  less  than  $5,000,000. 

The  timber  in  Linn  and  Lane  Counties  is  practically 
in  one  compact  tract  and  lies  only  about  20  miles  east  of 


BOND   CIRCULARS  353 

the  Southern  Pacific  Railroad.  It  was  bought  for  a  per- 
manent investment  and  I  believe  is  one  of  the  best  tracts 
of  its  size  of  fir  timber,  considering  quantity  per  acre  and 
quality,  on  the  Pacific  Coast.  I  have  been  offered  more 
than  $2,250,000  for  this  tract,  but  declined  to  sell. 

The  timber  in  Coos,  Curry,  Douglas  and  Lincoln  Coun- 
ties is  located  among  and  intermingled  with  other  large 
holdings  of  mine,  title  to  which  lies  in  the  C.  A.  Smith 
Timber  Co.  of  Oregon.  All  the  lands  in  these  latter  coun- 
ties I  plan  to  operate  and  will,  within  a  short  time,  be 
cutting  with  the  two  mills  owned  by  the  C.  A.  Smith 
Lumber  &  Manufacturing  Co.  located  at  Marshfleld,  Oregon, 
on  Coos  Bay,  one  of  the  good  harbors  of  the  Pacific  Coast, 
at  the  rate  of  150,000,000  feet  per  annum.  The  mill  now 
operating  is  cutting  between  7,000,000  and  8,000,000  feet 
per  month,  or  at  the  rate  of  about  85,000,000  feet  per  year 
and  we  plan  to  raise  this  to  100,000,000  feet  per  year. 
We  will  very  shortly  start  up  the  other  mill,  known  as  the 
Dean  Mill,  and  I  expect  to  have  an  output  here  of  approx- 
imately 4,000,000  feet  per  month,  or  say  45,000,000  feet  per 
year,  to  be  later  increased  to  50,000,000  feet  per  year,  all 
of  these  estimates  being  based  on  ten  hour  days.  If  desir- 
able this  output  can  of  course  be  doubled  by  means  of  two 
shifts. 

The  bond  issue  covers  by  first  mortgage  this  Dean  Mill. 
The  plant  is  worth  in  excess  of  $200,000. 

I  expect  to  be  able  to  cut  this  amount  of  timber  per 
year,  deliver  the  logs  to  the  mills,  manufacture  it  and  put 
the  finished  lumber  on  our  docks  (at  San  Francisco)  at  a 
cost  of  $7  per  thousand  feet.  Fir  is  now  selling  in  San 
Francisco  at  an  average  price  of  $14  per  thousand  feet. 
A  fair  average  price  over  a  period  of  years  would  be,  in  my 
opinion,  from  $15  to  $18  per  thousand  feet.  Washington 
and  Oregon  Fir  may  be  compared  in  its  uses  and  price  to 
the  yellow  pine  of  the  South.  As  the  most  generally 
used  wood  on  the  Coast  it  finds  employment  for  heavy 
structural  work,  large  timbers,  car  sills,  sidings  and  deck- 
ing, for  flooring  and  in  fact  for  almost  all  general  uses. 

We  own  at  Suisan  Bay,  near  San  Francisco,  a  large  dis- 
tributing yard.  We  also  own  two  steamers  having  a  car- 
rying capacity  of  2,250,000  feet  of  timber. 

The  Linn  &  Lane  Timber  Co.  has  entered  into  a  con- 
tract, (subject  to  the  Trust  Deed)  with  the  C.  A.  Smith 
Lumber  and  Manufacturing  Co.,  which  latter  concern  has 
a  paid  in  capital  of  $2,500,000,  whereby  the  Manufactur- 
ing Company  agrees  to  cut  off  the  timber  in  Coos,  Curry, 
Douglas  and  Lincoln  Counties,  or  pay  for  without  cut- 
ting, at  least  30,000,000  feet  per  year. 


354  TIMBER  BONDS 

The  price  to  be  paid  the  Linn  &  Lane  Timber  Company 
being  $6  per  thousand  feet  for  cedar  and  $3  per  thousand 
feet  for  fir  so  cut  during  the  year  1910,  with  an  advance 
of  50  cents  per  thousand  feet  for  cedar  and  an  advance 
of  25  cents  per  thousand  feet  for  fir  each  year  thereafter 
until  1918.  The  agreement  runs  until  1935,  eight  years 
after  the  expiration  of  the  last  maturing  bond  under  this 
mortgage,  but  on  December  31,  1918,  and  again  on  Decem- 
ber 31,  1928,  it  is  stipulated  that  the  prices  to  be  paid  for 
timber  by  the  said  Manufacturing  Company  shall  be  read- 
justed, but  in  no  event  shall  they  thereafter  be  less  than 
$8.50  for  each  thousand  feet  of  cedar  and  $4.25  for  each 
thousand  feet  of  fir. 

It  will  be  seen  from  the  above  that  by  this  agreement 
the  Linn  &  Lane  Timber  Company  should  have  a  substan- 
tial annual  income  from  this  source. 

REDEMPTION  FUND:  For  all  timber  proposed  to  be 
cut  and  manufactured  into  lumber,  the  mortgage  requires 
the  Linn  &  Lane  Timber  Company  to  deposit  with  the 
Trustee  (prior  to  the  cutting  of  the  timber)  at  the  rate  of 
$2.50  per  thousand  feet  log  scale  based  upon  the  estimates 
of  the  timber  filed  with  the  Trustee,  which  payment  is  at 
the  rate  of  over  seven  times  the  amount  of  the  loan,  and 
will  insure  the  whole  loan  being  paid  when  600,000,000  feet 
are  cut. 

The  Company  is  required  to  account  to  the  Trustee  for 
all  timber,  and  the  provisions  of  the  mortgage  covering 
this  point  are  carefully  and  strictly  drawn.  Provision  is 
made  in  the  mortgage  for  inspection  by  the  Trustee  or 
its  agents  of  the  mortgaged  property  at  intervals  of  six 
months,  the  cost  of  this  inspection  to  be  borne  by  the  Tim- 
ber Company. 

All  monies  received  by  the  Trustee  from  the  above 
sources  constitute  a  fund  to  retire  principal  only  of  this 
issue.  Should  the  deposits  exceed  the  amount  required  to 
pay  the  bonds  maturing  in  any  one  year,  the  Trustee  is  re- 
quired to  purchase  or  call  for  redemption  at  a  premium  of 
2V2  per  cent  and  accrued  interest  the  bonds  next  maturing 
to  an  amount  sufficient  to  practically  exhaust  such  de- 
posits. 

HAZARDS:  The  Timber  Company,  under  the  terms  of 
the  mortgage,  is  required  in  case  of  any  damage  by  fire, 
wind  or  elements  to  any  of  the  timber  securing  the  bonds  to 
promptly  pay  to  the  Trustee  $1  per  thousand  feet  for  such 
timber  so  damaged,  which  payment,  however,  shall  not  re- 
lease such  timber  from  the  lien  of  the  mortgage,  but  for 
such  release  an  additional  payment  of  $1.50  per  thousand 
feet  at  the  time  of  cutting  is  required. 


BOND   CIRCULARS  355 

The  timber  in  Coos,  Curry,  Douglas  aud  Lincoln  Coun- 
ties is  scattered  among  my  other  holdings  over  a  consider- 
able area,  and  the  timber  in  Linn  and  Lane  Counties  is 
separated  from  that  in  the  other  counties  by  a  distance  of 
from  100  to  125  miles.  The  timber  is  so  separated  that,  In 
my  opinion,  it  is  hardly  conceivable  that  an  amount  of  the 
timber  sufficient  to  imperil  the  bond  issue  could  be  de- 
stroyed by  any  accident. 

The  timber  is  located  between  the  western  slope  of  the 
Sierras  and  the  Pacific  Coast,  and  this  country  is  subject 
to  heavy  rains  and  fog  which,  to  a  large  extent,  eliminate 
the  fire  hazard.  Danger  from  fire  has  been  further  greatly 
lessened  by  the  greater  care  now  being  exercised  by  all 
the  larger  lumbermen  to  protect  their  interests.  In  addi- 
tion to  the  Government  fire  patrol  my  companies  and  other 
large  holders  of  timber  have  organized  our  own  patrol  sys- 
tems which  work  in  unison.  Provision  is  made  in  the  Trust 
Deed  for  the  maintenance  of  a  fire  patrol  system  under 
penalty. 

.  In  view  of  the  fact  that  I  personally  guarantee  both 
principal  and  interest  of  the  Linn  &  Lane  6  per  cent  Bonds 
it  may  interest  you  to  know  that  in  addition  to  our  output 
on  the  Coast  my  Minnesota  companies  now  have  an  output 
of  75,000,000  feet  per  year  and  by  the  time  the  Minnesota 
lands  are  cut  we  expect  to  have  in  operation  on  my  sugar 
pine  properties  in  California  a  mill  with  a  capacity  of 
from  40,000,000  to  50,000.000  feet  per  year.  In  other  words, 
our  companies  are  now  producing  over  200,000,000  feet  of 
lumber  per  annum  and  we  are  planning  to  maintain  at 
least  this  standard   of  production. 

Aside  from  small  interests  owned  by  men  connected  with 
the  management,  I  own  all  of  the  capital  stock  of  the 
Linn  &  Lane  Timber  Company  and  the  C.  A.  Smith  Lumber 
&  Manufacturing  Co..  and  the  C.  A.  Smith  Timber  Co.  of 
Oregon.  I  am  also  principal  owner  of  the  C.  A.  Smith  Lum- 
ber Co.  and  the  C.  A.  Smith  Timber  Co.  of  Minneapolis, 
two  very  successful  and  profitable  concerns.  I  own.  in 
addition,  upwards  of  100,000  acres  of  timber  land  in  Califor- 
nia and  Oregon,  unencumbered  and  have  interests  in  other 
manufacturing  and  mercantile  companies,  banks,  etc. 

Yours  very  truly, 
July  2,   1910.  C.  A.  SMITH. 

GUARANTEE:  Mr.  Charles  A.  Smith,  the  guarantor 
of  both  the  principal  and  interest  of  these  bonds,  and  his 
allied  companies  are  among  the  largest  timber  owners  and 
lumber  manufacturers  in  the  United  States.  He  is  presi- 
dent of,  and  with  other  members  of  his  immediate  family 
principal  owner,  aside  from  some  small  interests  owned  by 


356  TIMBER  BONDS 

the  men  connected  with  the  management,  of  the  following 
companies: 

Linn  &  Lane  Timber  Company. 

C.  A.  Smith  Lumber  and  Manufacturing  Company. 
C.  A.  Smith  Timber  Company  of  Oregon. 
Smith-Powers  Logging  Company. 

C.  A.  Smith  Lumber  Company  of  Minneapolis,  Minn. 
C.  A.  Smith  Timber  Company  of  Minneapolis,  Minn.,  etc. 
From    reliable    statements    submitted    Mr.    Smith's    net 
worth  is  shown  to  be  many  times  the  amount  of  this  bond 
issue. 

TIMBER  ESTIMATES:  Careful  estimates  of  the  tim- 
ber on  this  property  were  made  for  us  by  J.  P.  Braj'ton,  a 
well  known  and  competent  cruiser.  Messrs.  Lyon,  Gary  & 
Co.,  have  in  turn,  through  their  own  expert  cruisers, 
checked  this  report  to  their  complete  satisfaction.  Mr. 
Brayton's  detailed  estimate,  and  Lyon,  Gary  &  Company's 
check  of  same  may  be  seen  at  our  office,  or  a  resume  will 
be  sent  on   request. 

Average 
Per  Acre 
Acres  Feet  Log  Scale 

Coos,    Curry,    Douglas    and 

Lincoln  Counties   35.000     1.970,000,000         56,000 

Linn   and  Lane   Counties.  .35,000     2,402,000,000         68,000 
The  above  estimates  consist  in  detail  of  the  following: 

Feet 

Fir    3,803,000,000 

Cedar 57,700,000 

Port   Orford   Cedar 104,270,000 

Hemlock   315,565,000 

Larch  and  White  Pine 19,265.000 

Spruce 63.895,000 

Other  Timber    7,755,000 


4,351,450,000 
having  a  value,  based  on  a  conservative  price  of  $1.00  per 
thousand  feet,  in  excess  of  $4,300,000.  These  estimates  are 
based  upon  log  scale,  uncut  merchantable  timber.  The 
timber  is  of  good  quality,  and  the  situation  is  favorable 
from  a  logging  and  lumbering  standpoint.  The  mill  at 
Coos  Bav,  also  under  the  mortgage,  is  valued  at  over 
$200,000." 

TITLES  AND  MORTGAGE:  The  titles  to  the  lands 
covered  by  this  mortgage  have  been  carefully  examined 
on  the  ground  from  the  records  themselves  by  our  coun- 
sel. All  legal  details  relating  to  the  examination  of  titles, 
preparation  of  the  trust  deed,  etc.,  have  been  in  charge  of 


BOND   CIRCULARS 


S57 


Mr.  W.  \V.  Gurley,  of  Chicago,  and  Mr.  E.  E.  Barthell,  of 
Nashville,  Tenn.,  the  latter  a  specialist  on  timber  land 
titles. 

Prices  of  bonds  for  long  or  short  maturities  on  applica- 
ation. 

LYON  GARY  &  COMPANY, 

Lumbermen  and  Bankers. 

204  Dearborn  Street.     Telephone  Central  1147.     Chicago,  111. 

EXHIBIT  NO.  4. 

Peabody,  Houghteling  &  Co.,  105  S.  La  Salle  Street,  Chi- 
cago. Cable  address:  "Hought,"  Chicago.  Codes  used, 
Lieber  and  A.  B.  C.  5th  edition.  Circular  No.  725, 
February,   1911.      (Established   1865.) 

$1,200,000  First  Mortgage  6  Per  Cent  Serial  Gold  Bonds 
issued  by  the  Panhandle  Lumber  Company,  Limited, 
of  Spirit  Lake,  Idaho. 

Dated  February  1st,  1911.  Payable  in  series  as  below.  Re- 
deemable in  the  reverse  of  their  numerical  order  on 
interest  dates  at  105  and  interest.  Coupon  bonds  of 
$1,000  and  $500  each,  with  privilege  of  registration 
as  to  Principal.  Principal  and  Semi-Annual  Interest 
payable  at  the  First  National  Bank  of  Chicago  and  the 
First  National  Bank  of  New  York.  First  Trust  and 
Savings  Bank,  Chicago,  Trustee. 


MATURITIES. 


Amount 
$60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 


Term 
Vo  year 

1  year 
1%  years 

2  years 
2%  years 

3  years 
3%  years 

4  years 
iVs  years 

5  years 
51^  years 

6  years 
6^  years 

7  years 
TV2  years 

8  years 
8%  years 

9  years 
91^  years 

10  years 


Date  Maturing 
August  1,  1911 
February  1,  1912 
August  1,  1912 
February  1,  1913 
August  1,  1913 
February  1,  1914 
August  1,  1914 
February  1,  1915 
August  1,  1915 
February  1,  1916 
August  1.  1916 
February  1,  1917 
August  1,  1917 
February  1.  1918 
August  1,  1918 
February  1,  1919 
August  .  1,  1919 
February  1,  1920 
August  1,  1920 
February   1,  1921 


358  TIMBER  BONDS 

These  bonds,  which  are  issued  for  the  refunding  of  the 
Company's  floating  indebtedness,  are  secured  by  a  closed 
Firet  Mortgage  upon  all  the  property  now  owned  and  that 
may  hereafter  be  acquired  by  the  Panhandle  Lumber  Com- 
pany, Limited,  including  lands  and  standing  timber  in  the 
Counties  of  Kootenai  and  Bonner  in  the  State  of  Idaho, 
and  in  the  Counties  of  Spokane  and  Stevens  in  the  State 
of  Washington,  aggregating  89,294  acres  of  land  and  943,- 
978,490  feet  of  standing  timber  owned  in  fee  simple,  to- 
gether with  two  fine  modern  saw  mills,  having  a  normal 
capacity  of  100,000,000  feet  of  finished  lumber  per  annum. 

VALUATION  OF  SECURITY. 

Lands  and  standing  timber  owned  in  fee $3,562,770.67 

Farm  lands  and  city  real  estate 75,050.75 

Plants  and  equipment 1,544,240.45 

Total  fixed  assets    $5,182,061.87 

Cash  and  cash  assets,  net 971,692.77 

Total  assets  $6,153,754.64 

ACTUAL  INVESTMENT    IN  THE  PROPERTY. 

Cash  investment  of  stockholders $3,080,488.79 

Investment  of  bondholders 1,200,000.00 

Total  actual  investment $4,280,488.79 

The  stockholders,  therefore,  have  behind  the  bonds  an 

actual  cash  investment  of  more  than  two  and  a  half  times 

the  total  issue. 

EARNINGS. 

Net  earnings  in  1910  applicable  to  the  payment 

of  principal  and  interest  of  these  bonds.  . .  .$  283,418.22 
Annual  maturing  principal  of  these  bonds 120,000.00 

Available  for  bond  interest $    163,418.22 

Average  annual  bond  interest  charge 37,800.00 

The  net  earnings,  therefore,  after  providing  for  ten  per 
cent  of  the  entire  amount  of  the  principal,  were  suflBcient 
to  pay  the  average  annual  bond  interest  nearly  four  and  a 
half  times  over. 

The  year  1910  was  a  year  of  extreme  depression  in  the 
lumber  industry.  The  Company's  output  was  less  than  50 
per  cent  of  the  present  normal  capacity  of  its  plants.  The 
new  mill  at  lone,  representing  an  expenditure  of  over  $750,- 
000,  was  only  recently  put  in  operation  and  contributed  only 
a  nominal  amount  to  the  Company's  earnings.  Under  nor- 
mal conditions  the  Company's  output  in  finished  lumber 
will  be  100,000,000   feet  per  annum,  and  its  net  earnings 


BOND  CIRCULARS  359 

applicable  to   the   protection   of  principal   and   interest   of 
these  bonds  will  be  in  excess  of  $600,000  a  year. 

SINKING   FUND. 

The  mortgage  securing  these  bonds  provides  that  on  or 
before  the  15th  day  of  each  month  beginning  with  the 
month  of  March,  1911,  there  shall  be  deposited  with  the 
Trustee  a  sinking  fund  equivalent  to  $3  per  thousand  feet 
on  all  timber  cut  and  removed  from  the  Company's  prop- 
erty during  the  preceding  calendar  month.  This  sinking 
fund  shall  be  applied  to  the  payment  of  the  semi-annual 
instalments  of  the  principal  of  these  bonds  as  they  mature, 
and  any  surplus  remaining  in  the  sinking  fund  at  the  end 
of  any  six  months  period  may,  at  the  Company's  option, 
be  utilized  in  one  of  the  three  following  ways: 

First:     It  may  remain  in  the  sinking  fund. 

Second:  It  may  be  applied  in  redeeming  the  bonds  in 
the  reverse  of  their  numerical  order  at  105  and  interest. 

Third:  It  may  be  used  in  the  purchase  of  additional 
timber  and  timber  lands,  subject  to  the  approval  of  Pea- 
body,  Houghteling  &  Company. 

This  sinking  fund  is  sufficient  to  pay  off  the  entire 
principal  of  these  bonds  from  the  exhaustion  of  less  than 
one-half  of  the  Company's  standing  timber. 

DESCRIPTION   OF   SECURITY. 

The  Panhandle  Lumber  Company  was  incorporated 
in  1906  under  the  laws  of  the  State  of  Idaho  for  the  pur- 
pose of  doing  a  general  lumber  business.  The  Company 
immediately  began  to  purchase  judiciously  at  low  cost,  and 
to  assemble  for  its  future  needs,  important  blocks  of  stand- 
ing timber  in  the  territory  of  the  Pend  Oreille  River  valley, 
and  it  has  now  in  complete  operation  two  of  the  most 
modern  and  efficient  mills  in  this  country. 

TIMBER. — The  Company  now  owns  in  fee  simple  89,- 
294.83  acres  of  land  and  943.978,490  feet  of  merchantable 
standing  timber  in  the  Counties  of  Kootenai  and  Bonner  in 
the  State  of  Idaho,  and  in  the  Counties  of  Spokane  and 
Stevens  in  the  State  of  Washington.  These  timber  prop- 
erties comprise:  216,528,256  feet  of  white  pine,  277,180.652 
feet  of  yellow  pine,  450,269,582  feet  of  mixed  timber,  prin- 
cipally cedar,  spruce,  larch  and  fir.  In  addition  to  this 
timber,  these  lands  contain  465.668  cedar  poles  of  mer- 
chantable size.  These  timber  properties  are  well  located 
with  respect  to  the  Company's  mills,  being  available  both 
by  rail  and  water  at  low  operating  and  transportation 
cost. 

MILLS. — The  Company  owns  and  operates  two  of  the 
largest   and   most   modern   mills   in   the   west,   located   re- 


360  TIMBER  BONDS 

spectively  at  Spirit  Lake,  Idaho,  and  at  lone,  Washington. 
The  Spirit  Lake  mill,  which  was  completed  in  1908,  con- 
tains two  double  cutting  9  foot  band  saws,  together  with 
all  accessory  equipment.  The  plant  includes  lath  mill, 
planing  mill,  dry  kilns  and  complete  manufacturing  and 
shipping  facilities  for  handling  an  annual  output  of  over 
50,000,000  feet  of  finished  lumber  and  lumber  products. 
The  Company's  mill  at  lone  was  completed  in  1910  and  is 
an  exact  duplicate  of  the  Spirit  Lake  mill,  except  that  it 
is  electrically  driven.  The  electric  plant  of  the  lone  mill 
uses  sawdust  and  refuse  for  fuel  and  does  a  profitable  and 
steadily  increasing  business  in  general  power  and  lighting 
in  its  vicinity.  The  aggregate  normal  capacity  of  these 
two  mills  is  100,000,000  feet  of  lumber  per  annum  and  the 
maximum  capacity  over  1.50,000,000  feet  per  annum.  In 
order  to  justify  so  large  an  investment  in  plants,  the  Com- 
pany is  pursuing  the  commendable  policy  of  purchasing 
for  current  manufacture  the  standing  timber  and  logs  of 
other  owners  and  preserving  as  far  as  possible  its  own 
timber,  as  well  as  applying  its  surplus  funds  from  time 
to  time  in  adding  to  its  timber  reserves.  The  total  amount 
of  virgin  timber  within  economic  reach  of  the  Company's 
mills  is  in  excess  of  fifteen  billion  feet. 

TRANSPORTATION  FACILITIES.  —  The  Company's 
transportation  facilities  are  probably  not  equalled,  and  are 
certainly  not  excelled  by  those  of  any  other  lumber  com- 
pany in  the  West.  The  Idaho  &  Washington  Northern 
Railroad,  owned  largely  by  the  stockholders  of  the  Pan- 
handle Lumber  Company,  and  built  and  equipped  in  the 
most  substantial  manner,  runs  practically  through  the  cen- 
ter of  the  Company's  timber  properties.  This  line  connects 
with  the  five  main  transcontinental  trunk  lines  centering 
at  and  near  Spokane  and  enables  the  Company  to  ship 
its  product  to  all  markets  reached  by  these  transcontinental 
lines  at  the  same  rates  as  if  the  Company's  mills  were  actu- 
ally located  on  these  trunk  lines. 

MARKET. — The  lower  grades  of  the  Company's  product 
are  marketed  in  the  local  territory  immediately  tributary 
to  the  mills,  and  as  far  east  as  the  Mississippi  River,  and 
as  far  south  as  Denver,  Colorado,  including  the  very  profit- 
able and  growing  market  of  the  Canadian  prairie  provinces 
of  Saskatchewan  and  Manitoba,  into  which  section  the  Com- 
pany shipped  last  year  over  5,000,000  feet  of  lumber.  The 
western  pine  shop  lumber  is  marketed  largely  in  Wis- 
consin and  Iowa,  being  shipped  to  the  sash  and  door  mills 
in  these  states.  The  better  grades  of  boards  are  largely 
used  in  the  Chicago  market,  where  they  command  an  excel- 


BOND  CIRCULARS  361 

lent  price.  The  white  pine  product  is  sold  principally  in 
New  York,  Pittsburg,  Cleveland  and  Chicago. 

QUALITY  OF  PRODUCT.— The  percentage  of  high 
grade  lumber  in  the  Company's  product  is  unusually  high. 
Its  western  pine  timber  produces  an  average  of  from  50 
to  60  per  cent  No.  3  shop  or  better.  Its  white  pine  runs 
about  70  per  cent  No.  2  common,  or  better.  The  percentage 
of  low  grade  producl  in  both  classes  of  pine  is  extremely 
small,  being  only  about  5  per  cent  No.  4  boards  as  against 
about  40  per  cent  in  the  ^^linnesota  mills. 

EARNINGS. — During  the  year  1910  the  Company  sold 
from  its  Spirit  Lake  plant.  41,995,799  feet  of  lumber,  and 
from  its  lone  plant  7,379,455  feet,  making  a  total  of  49,375,- 
254  feet  and  its  net  earnings  applicable  to  the  payment  of 
principal  and  interest  of  these  bonds  were  $283,418.22, 
equivalent  to  $5.75  per  thousand  feet  of  lumber  sold.  In 
considering  these  figures  for  the  year  1910  it  is  proper  to 
call  attention  to  the  following  facts: 

1st:  The  Company  received  practically  no  benefit  from 
its  new  mill  at  lone  recently  completed  and  representing 
a   cash    investment   of   over   $750,000. 

2nd:  The  business  of  the  year  represents  less  than  50 
per  cent  of  the  Company's  present  normal  capacity. 

3rd:  The  year  was  one  of  extreme  depression  in  the 
lumber  industry. 

In  view  of  these  facts  the  showing  is  an  unusually 
creditable  one  and  proves  beyond  question  the  ability  of 
this  Company  to  protect  the  principal  and  interest  of  its 
bonds  under  the  most  adverse  conditions.  The  Company 
now  has  manufacturing  and  shipping  facilities  for  an  out- 
put of  100,000,000  feet  of  lumber  per  annum,  and  with  the 
return  of  normal  conditions  in  the  lumber  business,  it 
may  be  conservatively  estimated  that  its  margin  of  profit 
per  thousand  feet  will  be  increased  at  least  50  per  cent 
over  the  figures  of  last  year. 

FINANCIAL  CONDITION.— After  receiving  the  pro- 
ceeds of  these  bonds,  which  have  been  issued  for  the  pur- 
pose of  retiring  its  floating  indebtedness,  the  Company's 
condition  will  be  as  follows  as  of  January  1st,  1911: 

ASSETS. 

Laud  and  standing  timber $1,697,856.32 

Farm  lands  and  city  real  estate..        66,699.25 

Plants  and  equipment 1.544,240.45 

Logs,  lumber  and  supplies 680,240.96 

Cash,  accounts  and  bills  receivable.      333,442.14 

Total  assets  $4,322,479.12 


362  TIMBER  BONDS 

LIABILITIES. 

Capital  stock  outstanding $2,892,200.00 

Surplus  earnings   188,288.79 

First  mortgage  bonds 1,200,000.00 

Accounts  payable,  not  yet  due....        41,990.33 

Total   liabilities    ,..$4,322,479.12 

From  the  above  statement  it  is  evident  that  the  Com- 
pany has  a  net  working  capital  of  $971,692.77,  and  that 
it  has  no  liabilities  except  this  issue  of  bonds  and  current 
accounts  not  yet  due  of  $41,990.33.  The  above  balance 
sheet  shows  the  Company's  assets  at  their  actual  cash  cost 
and  does  not  reflect  the  large  actual  increase  in  the  value 
of  its  lands  and  standing  timber,  the  true  value  of  which 
is  shown  under  the  heading  "Valuation  of  Security"  on 
the  front  page  of  this  circular. 

FIRE  RISK. — A  careful  investigation  of  this  subject 
develops  the  fact  that  forest  fires  do  not  destroy,  but  only 
kill  timber  of  this  character  and  where  killed  timber  is 
promptly  cut  and  manufactured  100%  of  its  value  is  recov- 
ered. In  the  case  of  the  Panhandle  Lumber  Copmany,  the 
proximity  of  its  timber  to  its  mills  and  its  enormous  manu- 
facturing capacity  enables  it  to  recover  any  fire-killed  tim- 
ber promptly  and  without  any  loss  whatever.  As  a  mat- 
ter of  actual  experience,  it  is  interesting  to  note  that  by 
reason  of  the  clearing  of  the  underbrush  by  forest  fires,  the 
actual  logging  cost  to  the  Company  of  fire-killed  timber  is 
shown  to  be  from  one  to  two  dollars  per  thousand  feet 
less  than  the  normal  operation  of  unburned  forest,  while  the 
market  value  of  the  product  is  not  in  any  way  impaired. 

The  Panhandle  Lumber  Company  belongs  to  an  asso- 
ciation of  timber  owners  in  this  territory,  formed  for  the 
mutual  preservation  of  their  forests  from  fire.  This  asso- 
ciation maintains  an  eflicient  corps  of  rangers  to  patrol  the 
forests  during  the  summer  season  when  the  dry  condi- 
tion of  the  underbrush  makes  fires  possible.  The  fire 
hazard  in  the  timber  of  the  Panhandle  Lumber  Company 
is  commercially  negligible  and  cannot,  in  our  opinion, 
endanger  the  security  for  these  bonds. 

MANAGEMENT. — The  management  of  the  Company  is 
in  efficient  and  conservative  hands.  The  President,  Mr.  F. 
A.  Blackwell,  who  has  active  charge  of  the  Company's  af- 
fairs, is  a  man  of  the  highest  integrity,  with  a  long  and 
unbroken  record  of  success  in  the  lumber  business.  The 
manufacturing  and  selling  organizations  of  the  Company 
are  complete  and  efficient.  The  stockholders  of  the  Com- 
pany are  men  of  substantial  means  and  are  well  able  to 
protect  their  investment. 


BOND   CIRCULARS  363 

We  have  been  familiar  with  the  Panhandle  Lumber 
Company  ever  since  its  incorporation  in  1906.  Our  expe- 
rience with  Mr.  Blackwell  and  his  associates  in  their  rail- 
road and  other  enterprises  extends  over  a  long  period  of 
years  and  has  been  of  the  most  satisfactory  character. 
Through  our  own  auditors  and  experts  we  have  made  a 
thorough  investigation  of  the  security  behind  these  bonds, 
and  titles  to  the  Company's  property,  and  all  legal  pro- 
cedure, in  connection  with  the  issuance  of  these  bonds  have 
been  approved  by  Charles  L.  Heitman,  Esquire,  of  Spirit 
Lake,  Idaho,  acting  in  conjunction  with  our  own  legal  de- 
parment. 

We  recommend  these  bonds  as  an  unusually  sound 
and  desirable  investment  for  the  following  reasons: 

First:  The  timber  security  alone  is  conservatively  val- 
ued at  three  times  the  amount  of  the  bonds. 

Second:  The  Company's  total  assets  are  over  five  times 
the  amount  of  the  bonds. 

Third:  The  serial  payments  on  account  of  principal 
will  rapidly  increase  the  already  large  margin  of  security. 

Fourth:  The  Company's  earnings  under  the  most  ad- 
verse conditions  show  a  large  margin  over  both  principal 
and  interest  requirements. 

Fifth:  The  stockholders  have  an  actual  cash  invest- 
ment of  over  $3,000,000  behind  the  bonds. 

Sixth:  The  ownership  of  the  Company  is  in  strong 
hands  and  its  management  is  experienced  and  successful. 

The  bonds  will  be  ready  for  delivery  on  or  about 
March  1st. 

Price,  101  and  accrued  interest. 

Delivery  will  be  made  at  any  bank  desired,  express  pre- 
paid. 

Telegraphic  orders  may  be  sent  at  our  expense. 

Applications  will  be  filled  in  the  order  in  which  they 
are  received. 

PEABODY,  HOUGHTELING  &  CO., 
105  S.  La  Salle  Street,  Chicago. 

EXHIBIT  NO.  5. 

McCOY  &  CO.,  105  S.  La  Salle  St.,  Chicago. 
We  own  and  offer,  subject  to  prior  sale:  $600,000  J.  M. 
Thompson  Lumber  Company  (capital  and  surplus,  $1,522,- 
721),  Houston  and  Trinity,  Texas,  First  Mortgage  6  Per 
Cent  Gold  Bonds.  Secured  by  about  67,000  acres  of  virgin 
short  leaf  yellow  pine  timber  lands,  owned  in  fee  simple, 
located  in  Houston,  Trinity  and  Walker  Counties,  Texas, 
containing  over  413,300,000  feet,  log  scale,  of  standing  mer- 
chantable timber,  according  to  estimates  of  Lemieux  Broth- 


364  TIMBER  BONDS 

ers  &  Company,  of  New  Orleans,  La.  We  appraise  the  cur- 
rent market  value  of  the  property  covered  by  this  mort-' 
gage  at  $1,921,260  or  more  than  three  times  the  amount  of 
bonds  oustanding. 

The  mortgage  provides  that  none  of  the  timber  standing 
on  the  lands  covered  by  this  issue  can  be  cut  or  turpen- 
tined during  the  life  of  these  bonds. 

Central   Trust  Company  of  Illinois,   Chicago,  Trustee. 

Principal  and  interest  guaranteed  individually  by  the 
officers:  J.  A.  Thompson,  President;  J.  N.  Lewis  Thomp- 
son, 1st  Vice-President  and  General  Manager;  H.  H. 
Thompson,  2d  Vice-President;  L.  N.  Thompson,  Secretary; 
Alex.  Thompson,  Treasurer. 

The  guarantors  of  these  bonds  are  lumbermen  of  many 
years'  successful  experience  in  Texas.  They  control  four 
large  lumber  companies,  which  own  about  two  billion 
(2,000,000,000)  feet  of  merchantable  timber  in  eastern 
Texas. 

FINANCIAL    STATEMENT. 

Capital  stock $1,000,000 

Surplus    522,721 

Bonds  authorized $800,000 

Held  by  trustee  for  pur- 
chase of  additional  tim- 
ber lands  in  fee  simple, 
at  not  exceeding  $1.50 
per  1,000  feet  of  standing 
yellow    pine    timber....   200,000 


Outstanding  $    600,000 

Dated  July  1,  1908.  Principal  and  semi-annual  interest 
(January  and  July  1st)  payable  at  the  office  of  the  Trus- 
tee. Principal  may  be  registered  if  desired.  Denomina- 
tions,   $1,000   and   $500. 

Bonds  mature  in  series  each  six  months  as  follows: 

$75,000  due  .Tuly  1,  1911 
75,000  due  January  1,  1912 
75,000  due  July  1,  1912 
75,000  due  January  1,  1913 
75,000  due  July  1,  1913 
75,000  due  January  1,  1914 
75,000  due  July  1,  1914 
75,000  due  January  1,  1915 

Price  any  maturity,  par  and  interest,  yielding  6  per  cent. 
This  mortgage  to  the   Central  Trust  Company  of   Illi- 
nois, as  Trustee,  is  a  first  lien  on  about  67,000  acres  of  un- 


BOND  CIRCULARS  365 

cut  virgin  timber  lands,  well  grouped,  located  in  Houston. 
Trinity  and  Walker  Counties.  Texas,  heavily  timbered  with 
short  leaf  yellow  pine. 

The  trust  deed  provides  that  none  of  the  timber  stand- 
ing on  the  lands  covered  by  this  issue  can  be  cut  or  tur- 
pentined during  the  life  of  any  of  these  bonds. 

For  further  information  in  regard  to  the  property  secur- 
ing these  bonds  and  the  personnel  of  the  guarantors,  we 
refer  you  to  letter  of  J.  Lewis  Thompson,  vice-president 
and  general  manager  of  the  Company,  attached  hereto. 

TITLES    AND    MORTGAGE. 
The  titles  to  the  lands  covered  by  this  mortgage  have 
been  carefully  examined  and  certified  by  our  counsel,  Mr. 
Samuel  Adams,  of  Chicago,  under  whose  legal  direction  the 
mortgage  and  bonds  were  prepared. 

VALUE  OF  PROPERTY. 
Careful  estimates  of  the  timber  have  been  made  in  de- 
tail by  Messrs.  Lemieux  Brothers  &  Company,  of  New  Or- 
leans, La.,  which  summarized,  are  as  follows: 

Feet 

Short  leaf  yellow  pine 341,050,006 

Hardwoods,    mostly    fine    oak    and 

good  gum    72,265,000 

Total    413,315,000 

We  appraise  the  property  under  this  mortgage  as  fol- 
lows: 

341,050,000    feet    pine,    at    $4.00    per 

1,000   feet    $1,364,200 

72,265,000    feet    hardwood,    at    $4.00 

per   1,000    feet 289,060 

67,000  acres  at  $4.00   per  acre,   agri- 
cultural value    268,000 

Total    $1,921,260 

This  mortgage  is  at  the  rate  of  $1.76  per  1,000  feet  of 
standing  yellow  pine  timber,  and  at  the  rate  of  only  $1.46 
per  1,000  feet  of  all  merchantable  timber,  not  taking  into 
account  the  agricultural  value  of  the  lands,  owned  in  fee, 
after  the  timber  is  removed. 

Lemieux  Brothers  &  Company,  in  their  report  to  us, 
state    as    follows: 

"Our  book  of  estimates  on  the  lands  of  the  J.  M.  Thomp- 
son Lumber  Company,  of  Houston,  Texas,  has  recently 
been  submitted  to  you ;  the  book  shows  the  amounts  of  the 


366  TIMBER  BONDS 

diffei-ent  kinds  of  timber  on  each  survey,  but  the  purpose 
of  this  letter  is  to  give  you  some  further  information  re- 
garding the  general  character  of  the  land,  gathered  during 
our  personal  examination   of  it. 

"As  will  be  seen  from  the  map  of  the  property,  the 
various  surveys  constitute  an  almost  solid  body,  very  com- 
pact, which  is  one  of  the  requisites  of  an  easily  logged 
tract  of  timber  land.  We  think  that,  taking  into  account 
in  this  case  all  conditions  which  ordinarily  affect  logging 
operations,  this  timber  could  be  logged  very  cheaply;  good 
transportation  facilities  are  afforded  by  the  railroads  now 
running  through  the  tract,  the  International  &  Great 
Northern  and  the  Trinity  &  Sabine  railroads,  and  the 
Beaumont  &  Great  Northern.  The  latter,  although  but  a 
short  road  used  for  a  logging  railroad,  could  undoubtedly 
be  made  of  much  service  in  developing  this  property.  The 
only  part  of  the  tract  for  which  a  railroad  would  have  to 
be  built  is  the  part  lying  west  of  the  town  of  Trinity,  and, 
as  the  land  there  is  very  gently  rolling,  there  would  be 
very  little  grading  required  in  the  building  of  the  rail- 
road, and  no  bridges,  as  there  are  no  streams  of  any  con- 
sequence in  this  part  of  the  property.  The  surface  of  the 
land  throughout  is  gently  rolling,  just  enough  to  give  it 
good  drainage,  although  it  is  not  far  from  level;  the  pine 
land  is  never  overflowed,  and  there  would  be  no  trouble 
with  high  water  in  conducting  logging  work. 

We  consider  the  timber  good  short  leaf  pine,  green  and 
thrifty.  The  estimate,  carefully  made  under  the  super- 
vision of  our  Mr.  P.  A.  Lemieux,  is  accurate  and  the  figures 
speak  for  themselves.  Besides  the  short  leaf  pine  above 
mentioned,  there  is  a  large  amount  of  good  hardwood 
timber  on  the  land,  which  adds  a  great  deal  to  the  value 
of  the  tract." 

TIMBER  VALUES. 

It  is  now  a  matter  of  common  knowledge  that  standing 
timber  in  the  United  States  is  constantly  becoming  more 
scarce  and  rapidly  increasing  in  value.  This  increase  in 
values  has  been  especially  marked  in  the  last  three  years, 
owing  to  the  rapid  depletion  of  the  forests  to  supply  the 
constantly  increasing  demand  for  lumber.  The  United 
States  Department  of  Agriculture  (Forest  Service)  reports 
that  the  timber  of  this  country  is  being  consumed  three 
to  four  times  as  fast  as  its  natural  increase.  The  con- 
sumption of  lumber  per  capita  is  more  now  than  ever  be- 
fore. The  increase  in  population  from  1880  to  1890  was 
52  per  cent.,  but  the  increase  in  the  lumber  cut  was  94 
per  cent.  Yellow  pine  (the  kind  of  timber  standing  on  the 
lands  covered   by  this  mortgage)    is  still  far   in   the   lead 


BOND   CIRCULARS  367 

as  a  lumber  producer,  supplying  about  thirty-five  per  cent, 
of  the  total  cut.  During  the  period  from  1899  to  1906  the 
increase  in  production  of  yellow  pine  was  about  21  per 
cent.,  while  the  increase  in  value  was  77  per  cent.  With 
an  increasing  demand  for  lumber  products  and  a  decreas- 
ing supply  of  the  raw  material — standing  timber — it  is 
evident  that  the  value  of  timber  lands  will  continue  to 
increase.  There  is  today  no  commodity  more  stable  in 
price  than  well  located  timber  lands,  and  consequently  no 
security  upon  which  money  can  be  loaned  with  greater 
safety. 

GUARANTY. 

The  payment  of  the  bonds  and  interest  thereon  is  guar- 
anteed unconditionally  by  the  five  Thompson  Brothers. 

J.  A.  Thompson,  Taylor,  Texas,  President  J.  M.  Thomp- 
son Lumber  Company,  owner  line  of  retail  lumber  yards. 
Director  Taylor  National  Bank. 

J.  Lewis  Thompson,  Houston,  Texas,  First  Vice-Presi- 
dent and  General  Manager  J.  M.  Thompson  Lumber  Com- 
pany, President  and  General  Manager  Thompson  &  Tucker 
Lumber  Company,  President  and  General  Manager  Thomp- 
son Brothers  Lumber  Company,  President  and  General 
Manager  Thompson  &  Ford  Lumber  Company,  Director 
Merchants'  National  Bank  of  Houston. 

L.  M.  Thompson,  Houston,  Texas,  Secretary  and  Direc- 
tor of  all  Thompson  Companies. 

H.  H.  Thompson,  Willard,  Texas,  Second  Vice-President 
J.  M.  Thompson  Lumber  Company,  Treasurer  Thompson 
&  Tucker  Lumber  Company,  Treasurer  Thompson  Brothers 
Lumber  Company.  Director  Thompson  &  Ford  Lumber 
Company. 

Alex.  Thompson,  Doucette,  Texas.  Treasurer  J.  M. 
Thompson  Lumber  Company,  Second  Vice-President 
Thompson  &  Tucker  Lumber  Company,  Vice-President 
Thompson  Brothers  Lumber  Company,  Director  Thompson 
«6i  Ford  Lumber  Company. 

The  guarantors  own  the  J.  M.  Thompson  Lumber  Com- 
pany (maker  of  this  bond  issue)  which  is  a  timber  hold- 
ing company  organized  by  their  father,  Mr.  J.  M.  Thomp- 
son, the  first  manufacturer  of  lumber  in  Texas.  The  prop- 
erty owned  by  this  company  and  covered  by  this  bond 
issue  is  one  of  the  finest  tracts  of  short  leaf  yellow  pine 
in  the  South,  and  is  so  regarded  by  prominent  lumbermen. 
They  own  75  per  cent,  of  the  Thompson  &  Tucker  Lumber 
Company,  also  organized  by  their  father  in  1852,  with  a 
large  lumber  manufacturing  plant  at  Willard,  Texas,  and 
about  41,000  acres,  owned  in  fee  simple,  of  virgin  long  leaf 
yellow  pine  timber  lands  in  Trinity  and   Polk  counties. 


368  TIMBER  BONDS 

This  is  the  oldest  lumber  manufacturing  company  in 
Texas.  They  own  75  per  cent,  of  the  Thompson  Brothers 
Lumber  Company,  which  owns  about  39000  acres  of  vir- 
gin long  leaf  yellow  pine  timber  lands  in  Tyler  County, 
Texas.  This  company  is  now  completing  a  large  modern 
lumber  manufacturing  plant  at  Doucette  in  place  of  the 
one  recently  destroyed  by  fire.  The  Thompson  &  Ford 
Lumber  Company  is  largely  owned  by  the  Thompson 
Brothers.  J.  Lewis  Thompson  is  president  and  general 
manager.  This  company  operates  one  of  the  largest  and 
most  modern  lumber  manufacturing  plants  in  Texas,  at 
Grayburg,  and  owns  in  fee  simple  and  by  long  time 
leases  the  standing  timber  on  about  51,000  acres  of 
virgin  short  leaf  yellow  pine  timber  lands  in  Hardin, 
Liberty  and  Jefferson  Counties,  Texas. 

It  is  the  opinion  of  J.  Lewis  Thompson,  general  man- 
ager of  all  the  Thompson  companies,  and  who  has  per- 
sonally inspected  the  timber  lands  owned  by  the  companies, 
that  they  will  safely  cut  two  billion  (2,000,000,000)  feet  of 
merchantable  lumber. 

FIRE  HAZARD. 

Timber  located  in  the  Southern  States  has  never  been 
destroyed  by  fire.  This  statement  will  be  verified  by  lum- 
bermen and  other  persons  familiar  with  southern  timber. 
Any  serious  damage  by  fire  is  impossible  because  of  the 
absence  of  undergrowth  and  the  height  of  the  trees.  This 
is  one  of  the  most  important  facts  in  connection  with  this 
security. 

DATES  OF  PAYMENT. 

These  bonds  are  issued  in  denominations  of  $1,000  and 
$500  each,  and  are  due  and  payable  each  six  months.  (See 
first  page.)  All  or  any  of  the  bonds  may  be  paid  at  any 
interest  period  prior  to  maturity  on  sixty  days'  notice  at  a 
premium  of  3  per  cent,  and  accrued  interest. 

All  bonds  offered  by  us  are  subject  to  sale,  change  of 
price  or  withdrawal.  We  use  our  best  endeavors  to  care- 
fully examine  the  details  connected  with  the  bonds  offered, 
and  while  we  do  not  guarantee  information  and  statements 
in  our  letters  and  circulars  regarding  securities,  they  are 
the  expressions  of  our  belief,  or  are  statements  that  have 
been  made  to  us  from  what  we  consider  reliable  sources 
and  upon  which  we  have  acted.  We  can  furnish  the  writ- 
ten opinion  of  our  attorneys  on  each  issue.  Orders  for 
bonds  may  be  telegraphed  at  our  expense.  Bonds  delivered 
to  purchaser,  express  prepaid,  payable  in  New  York  or 
Chicago  exchange. 


BOND  CIRCULARS  369 

J.  A.  Thompson,  Pres. 
J.  L.  Thompson,  Vice-Pres. 
L.  N.  Thompson,  Secy. 
Alex.  Thompson,  Treas. 

Hoxie  H.  Thompson,  Vice-Pres.  and  M.s,r. 
J.   M.   THOMPSON  LUMBER  COMPANY 
Capital  and  Surplus  $1,200,000.00. 
Manufacturers  of  Yellow  Pine  Lumber 

Houston,  Texas,  December  18,  1908. 
Messrs.  McCoy  &  Co.,  Chicago. 

Gentlemen: — Referring  to  bond  issue  of  the  J.  M. 
Thompson  Lumber  Co.,  I  believe  it  would  be  of  interest 
to  your  clients  to  know  something  of  the  history  of  this 
company  and  of  the  personnel  of  the  guarantors — viz., 
.T.  A.,  J.  L.,  L.  N.,  H.  H.,  and  Alex.  Thompson. 

J.  M.  Thompson,  founder  of  the  company,  began  the 
manufacturing  of  lumber  in  1852,  under  the  firm  name  of 
The  Thompson  &  Tucker  Lumber  Company,  and  celebrated 
his  fiftieth  birthday  in  lumber  manufacturing  by  retiring 
from  active  operation,  and  in  the  spring  of  1902  disposed  of 
his  holdings  in  the  Thompson  &  Tucker  Lumber  Company, 
the  oldest  lumber  manufacturing  concern  in  Texas,  of  which 
he  was  founder  and  was  for  fifty  years  the  active  head.  It 
was  after  retiring  from  active  business  that  he  considered 
the  idea  of  organizing  a  timber  holding  company  to  be 
composed  entirely  of  members  of  his  immediate  family. 
The  70,000  acres  of  fee  land,  and  more  than  400  million 
feet  of  timber  (according  to  Lemieux  Brothers  &  Com- 
pany's detailed  report,  which  is  in  your  possession)  now 
owned  by  J.  M.  Thompson  Lumber  Company,  is  the  out- 
growth of  this  idea. 

J.  M.  Thompson  died  in  April  of  1907,  after  having 
spent  55  years  in  the  lumber  business  in  the  State  of  Texas. 
The  five  guarantors  of  these  bonds,  J.  A.,  J.  L.,  L.  N.,  H.  H., 
and  Alex.  Thompson,  are  all  sons  of  J.  M.  Thompson,  and 
have  been  connected  with  the  lumber  business  from  their 
youth. 

J.  A.  Thompson  is  a  resident  of  Taylor,  Texas,  and  has 
a  line  of  retail  yards;  is  a  man  of  54  years  of  age. 

J.  L.  Thompson  is  president  and  general  manager  of 
Thompson  &  Tucker  Lumber  Company  and  Thompson  Bros. 
Lumber  Company. 

L.  N.  Thompson  is  general  sales  agent  of  these  two  com- 
panies. 

H.  H.  Thompson  is  manager  of  manufacturing  plant  of 
Thompson  &  Tucker  Lumber  Company,  at  Willard,  Texas. 

Alex.  Thompson  is  manager  of  Thompson  Bros.  Lum- 
ber Company  at  Doucette,  Texas.     We  are  also  interested 


370  TIMBER  BONDS 

in  the  Thompson  &  Ford  Lumber  Company  at  Sour  Lake. 
Texas. 

After  the  completion  of  the  new  plant  of  Thompson 
Bros.  Lumber  Company,  now  in  course  of  construction  at 
Doucette.  Texas,  the  output  of  this  plant  and  the  plant  of 
the  Thompson  &  Tucker  Lumber  Company  at  Willard. 
Texas  (of  which  companies  we  are  in  active  ownership  of 
75  per  cent  of  the  property),  will  be  50  million  feet  annu- 
ally, which  two  plants  are  backed  up  by  more  than  900 
million  feet  j^ellow  pine  stumpage. 

The  writer  has  personally  inspected  the  entire  holdings 
of  the  J.  M.  Thompson  Lumber  Company,  and  every  tract 
has  been  purchased  by  me  only  after  a  personal  inspec- 
tion of  the  timber.  It  is  my  opinion  and  the  opinion  of  all 
those  interested,  that  this  tract  of  timber,  when  milled, 
will  produce  not  less  than  500  million  feet  of  lumber.  Most 
of  my  business  life  has  been  spent  in  the  woods  in  con- 
nection with  our  logging  operations,  and  it  is  my  opinion 
that  for  a  short  leaf  pine  proposition  this  tract  of  timber 
cannot  be  excelled  as  a  logging  venture.  This  statement 
can  be  easily  verified  from  a  personal  inspection  by  prac' 
tical  loggers.  Location  of  manufacturing  plant  at  Trinity, 
Texas,  would  make  longest  haul  for  any  timber  17  mile's, 
or  an  average  haul  of  entire  tract  of  timber  not  to  exceed 
10  miles.  The  entire  tract  can  be  logged,  in  my  opinion, 
at  a  maximum  cost  of  $3.00  per  thousand  feet. 

A  plant  at  Trinity  would  have  access  to  three  lines  of 
railways:  International  &  Great  Northern  (part  of  Gould 
System);  Missouri.  Kansas  &  Texas  Railway  Company 
from  Trinity  to  Colmesneil,  where  the  Texas  &  New  Or- 
leans (a  Southern  Pacific  road)  would  be  intersected;  the 
Beaumont  &  Great  Northern,  which  is  now  completed  from 
Trinity  to  Livingston — with  Beaumont  as  its  objective 
point — at  Livingston  it  connects  with  the  Houston  East  & 
West  Texas  Railway  Company. 

From  this  it  can  readily  be  seen  that  from  an  oper- 
ator's viewpoint  this  is  an  especially  desirable  tract  of 
timber.  It  is  my  opinion  that  all  southern  pine  timber 
has  a  commercial  value  of  $4  per  M.  I  think,  however,  a 
specially  favorable  tract  for  logging  purposes  is  worth  as 
much  more  than  $4  per  M,  as  it  can  be  logged  less  than 
$3.50  per  M.  I  figure  logs  delivered  at  pond  are  worth 
$7.50  per  M,  which  figures  I  believe  are  generally  accepted 
by  all  practical  lumbermen  of  today. 

This  bond  issue  will  represent  the  entire  indebtedness 
of  the  company. 

I  submit  below  statement  of  the  .J.  M.  Thompson  Lum- 
ber Company.  Oct.  1.  1908: 


BOND  CIRCULARS  371 

ASSETS. 

413  million  feet  stumpage  at  $3  per  M $1,239,000 

Bills  receivable   80,000 

fi7,907  acres  land  owned  in  fee  at  $3  per  acre 203,721 

Total    $1,522,721 

LIABILITIES. 

Capital  stock    $1,000,000 

Surplus     522,721 

Total    $1,522,721 

It  is  the  opinion  of  the  writer,  from  a  personal  inspec- 
tion, that  the  lands  of  the  four  Thompson  companies  will 
safely  cut  two  billion  (2,000,000,000)  feet  of  merchantable 
timber. 

Assuring  you  of  my  willingness  to  furnish  any  further 
information  that  you  or  your  clients  might  desire  in  con- 
nection with  these  properties,  I  am  pleased  to  remain. 

Yours  truly, 

J.  L.  THOMPSON, 
Vice-Pres.  and  Gen'l  Manager. 

*.J.  M.  Thompson  Lumber  Co. 

McCOY  &  COMPANY, 

105  So.  LaSalle  St., 

Chicago. 

EXHIBIT  NO.   6. 

CLARK  L.  POOLE  &  CO- 
BANKERS. 
Chicago. 

Six  per  cent.  Timber  Land  Bonds.  Secured  by  148,200 
acres  of  virgin  redwood,  sugar  pine  and  fir  timber 
lands,  owned  in  fee  simple,  and  8,000  acres  timber 
leases  located  in  Humboldt  and  El  Dorado  Counties, 
California,  and  Coos,  Curry,  Douglas  and  Lincoln 
Counties,  Oregon,  estimated  to  contain  over  seven 
billion  eight  hundred  and  fifteen  million  (7,815,000,000) 
feet  of  merchantable  timber.  We  appraise  the  present 
market  value  of  this  timber  at  ten  million  six  hundred 
thousand  ($10,600,000)  dollars,  or  more  than  three  and 
one-half  times  the  amount  of  bond  issue.  The  bonds 
are   also    a    first    lien    on    two    lumber    manufacturing 


372  TIMBER  BONDS 

plants,  now  in  operation,  at  Marshfield  (Coos  Bay). 
Oregon,  and  two  large  plants  and  standard  gauge 
railroad  to  be  constructed  in  connection  with  the  tim- 
ber holdings  in  California. 

We  offer,  subject  to  prior  sale,  at  par  and  interest,  $3,000.- 
000  6  per  cent.  First  Mortgage  Gold  Bonds  of  the 
C.  A.  Smith  Timber  Company,  of  Marshfield,  Ore. 
Principal  and  interest  guaranteed  by  C.  A.  Smith,  Min- 
neapolis, Minn. 

Dated  April  1,  1908.     Coupon  bonds,  $1,000  and  $500  each. 
Principal  may  be  registered.     Bonds  mature: 
$100,000  October  1,  1909  $200,000  October  1,  1913 

100,000  April       1.  1910  200,000  April       1,  1914 

100,000  October  1,  1910  200,000  October  1,  1914 

200,000  April       1,  1911  200,000  April       1,  1915 

200,000  October  1,  1911  200,000  October  1,  1915 

200,000  April       1,  1912  200,000  April       1,  1916 

200,000  October  1.  1912  200,000  October  1,  1916 

200,000  April       1,  1913  300,000  April       1.  1917 

Principal  and  interest  payable  at  Central  Trust  Company 
of  Illinois,  Trustee,  Chicago. 

Mr.  C.  A.  Smith,  who  personally  guarantees  the  payment 
of  the  principal  and  interest  of  these  bonds,  is  one  of 
the  largest  Individual  owners  of  timber  lands  in  the 
United  States.  Mr.  Smith  has  been  for  the  past  twenty 
years,  and  is  at  the  present  time,  one  of  the  largest  and 
most  successful  manufacturers  of  white  pine  lumber  in 
the  North,  at  Minneapolis,  Minn. 

THIS  MORTGAGE 

To  the  Central  Trust  Company  of  Illinois,  as  Trustee, 
is  a  first  lien  on  the  following  virgin  timber  lands  owned 
in  fee  simple: 

30,480  acres  of  redwood  timber  lands  in  Humboldt 
County,  California. 

45,320  acres  of  sugar  and  yellow  pine  timber  lands  in 
El  Dorado  County,  California. 

61,760  acres  of  fir,  cedar,  spruce  and  hemlock  timber 
lands  in  Coos,  Curry  and  Douglas  Counties,  Oregon. 

10,640  acres  of  fir,  cedar,  spruce  and  hemlock  timber 
lands  in  Lincoln  County,  Oregon. 

8,000  acres  sugar  and  yellow  pine  timber  leases  in  El 
Dorado  County,  California. 

Total,  156,200  acres. 

The  above  tracts  of  timber  lands  are  all  well  grouped, 
and  compare  favorably  as  to  location  and  accessibility, 
quality  and  density  of  growth  (which  three  factors  deter- 
mine the  value  of  timber  lands)   with  the  best  holdings  on 


BOND   CIRCULARS  373 

the  coast.  Map  showing  locations  of  these  lands  can  be 
seen  at  our  office. 

The  bond  issue  also  covers  the  two  saw  mill  plants 
owned  bj'  the  companj',  and  located  at  Marshfleld,  Ore.,  on 
Coos  Bay,  one  of  the  best  harbors  on  the  Pacific  Coast. 
(Complete  description  of  mill  property  will  be  sent  upon 
request.) 

The  greater  part  of  the  proceeds  of  the  bond  issue  will 
be  used  to  build  two  large  lumber  manufacturing  plants 
and  standard  gauge  railroads  in  connection  with  the  timber 
lands  in  California  referred  to  above;  all  of  this  acquired 
property  becomes  subject  to  the  lien  of  these  bonds.  The 
balance  of  the  proceeds  is  to  be  used  to  retire  floating 
indebtedness. 

TIMBER  ESTIMATES. 

Careful  estimates  of  the  timber  have  been  made  in  detail 
by  expert  timber  estimators  and  verified  by  our  own 
cruisers,  in  charge  of  Mr.  W.  E.  Straight,  a  well  known 
and  competent  timber  estimator  with  over  twenty  years' 
experience.  (Detail  estimates  can  be  seen  at  our  office. 
Copy  of  our  cruiser's  report  will  be  sent  on  application.) 
These  estimates  are  summarized  as  follows: 

Acres.  Feet. 
Coos,   Curry  and   Douglas   Counties, 

Oregon    61,760  3.187.585,000 

Lincoln  County,  Oregon 10,640  651,335,000 

El  Dorado  County,  California 53,320  1,473,087,000 

Humboldt  County,  California 30,480  2,503,555,000 

Total     156,200         7.815,562,000 

Average  per  acre  of  50,035  feet,  log  scale. 
Above  total  estimates  consist  of  the  following: 

Redwood    1.781,170,000  feet 

Sugar  pine   663,070,000  feet 

California    white    pine 439,690,000  feet 

Fir     4,233,177,000  feet 

Cedar    242.890,000  feet 

Spruce    264,580,000  feet 

Hemlock     190,985,000  feet 

Total    7.815,562,000  feet 

These  estimates  are  based  upon  log  scale  of  uncut  mer- 
thantable  timber.  The  timber  is  of  exceptionally  good 
quality  and  the  whole  situation  is  favorable  from  a  logging 
and  lumbering  standpoint. 


374  TIMBER  BONDS 

We  appraise  tiie  market  value  of  the  redwood, 
sugar  pine  and  white  pine  timber — 2,833,- 
930,000  feet— at  12.00  per  1.000  feet $5,761,860.00 

Fir.  cedar,  spruce  and  hemlock  timber — 4.931,- 

632,000  feet  at  ?1.00  per  1,000  feet 4,931.632.00 


?10,699,492.00 

The  value  of  the  standing  timber  at  the  above  conserva- 
tive appraisal  is  $10,699,942.00.  or  more  than  three  and 
one-half  times  ihe  amount  of  this  bond  issue,  without  tak- 
ing into  account  the  mill  properties  at  Coos  Bay,  costing 
over  $4t)0,000,  or  the  additional  railroad  and  mill  prop- 
erties to  be  constructed  with  the  proceeds  of  this  bond 
issue. 

Our  cruisers  report  that  all  of  the  lands  in  Coos.  Curry 
and  Douglas  Counties.  Oregon,  are  so  located  that  every 
acre  can  be  logged  to  advantage  either  by  water  or  by  rail- 
road, and  it  is  all  tributary  to  the  saw  mills  on  Coos  Bay. 
at  Marshfield.  Oregon.  The  Coquille  River  and  branches, 
and  the  Umpqua  River  and  branches  intersect  the  whole 
tract.  A  large  part  of  the  land  in  Coos  County  is  located 
on  tide  water  bayous. 

Tlie  greater  part  of  the  land  in  Humboldt  County.  Cali- 
fornia, is  located  upon  the  bottom  lands  of  Redwood  and 
Prairie  creeks:  a  very  small  percentage  is  on  mountain 
slopes  which  verge  toward  these  creeks.  The  Southern 
Pacific  Railroad's  new  coast  line  from  Portland  to  San 
Francisco,  now  building  from  Drain,  Oregon,  to  ilarsh- 
Qeld.  Oregon,  and  from  there  surveyed  to  Trinidad,  Cali- 
fornia, will  pass  through  these  lands. 

The  main  body  of  the  land  in  El  Dorado  County,  Cali- 
fornia, is  located  on  a  plateau  and  is  favorably  situated 
for  logging  operations. 

For  further  information  in  regard  to  this  property  we 
refer  to  letter  of  C.  A.  Smith,  president,  attached  hereto. 

TITLES  AND  MORTGAGE. 

The  titles  to  the  lands  covered  by  this  mortgage  have 
been  carefully  examined  and  certified  by  our  counseL  Mr. 
Samuel  Adams,  of  Chicago,  under  whose  legal  direction 
the  mortgage  and  bonds  were  prepared.  See  letter  attached 
of  ex-Governor  John  Lind  and  A.  Ueland,  attorneys,  of 
Minneapolis.  Minn.,  certifying  to  the  titles  of  a  great  part 
of  these  lands. 

GUARANTY. 

The  payment  of  the  principal  and  interest  of  these  bonds 

is  unconditionally  guaranteed  by  endorsement  on  each  bond 
by   3Ir.   C.   A.   Smith,   of   Minneapolis,    Minn.     Mr.    Smith. 


BOND  CIRCULARS  3T5 

with  one  exception,  is  the  laxsK"     _  -      — 

ber  lands  in  the  Fnited  States      .:.-    :i-:s    .-:  •.:::i..7 

owned  by  him  are  located  adjo :--".   ::    i-i    :z:^:~:z:'.^  L 

with  the  lands  corered  bj  this  :•:- :  :;=:t  i- :  :ir  v.-:t- 

standins  thereon  will  come  oat   :"-:   :i- 

mannfaetnred  at  the  mills,  now    i   :      -  -v 

stmcted  from  the  proceeds  oft:  .-:    Sn.  i 

has  been  for  the  past  twenty  y^.- 

time,  one  of  the  largest  and  m :  ^ : 

ers  of  white  pine  lumber  in  the  r 

is  president  and  sole  owner,  a  =  - 

owned  by  the  mm  diiedOj  cc:  .1    '.'--    —i-:.^-- 

ment,  of  the  following  compamie^ 

C.  A.  Smith  Lnmber  Gompany.  V--     : 

C.  A.  Smith  Timber  Company    v-  ,    :     z- 

C-  A-  Smith  Timbo-  Company 

C.  A.  Smith  Lnmber  &  Maniri^  ^        -      1:     --3.r5- 

field.  Ore. 

Smith-Powers  Logging  CmnFi: 

The  net   worth  of  the  guar   r  ~  t  j    :  1  ^ 

amount  of  tiiis  bond  issne.     fSr-  S~::i    1: 

tached  hereto.) 

The   mortgs.rT        "  :  -;     r  ri    a 

deposit  with  -JIt     _:■:-;    ;:    5'  :_      ;^:i:    :---.     '.:z 

scale,  tor  all  :  11   ^  :    i":    :___.-  _^-    .':;_    :~:~: 

baaed  upon  the  r ;  : r: ^  r -  f  - :  -■::'!   .  1  t    .  r  ,: 5 . t r       .  -  -       :i: 
pany  is  reqfuirr  :  t;     -  ::::-   :i  Lizi: -\:::   ^_i:   -     ::   :i^ 

Trustee  for  ea /i    :     :  :   r    :      n:::-        :  ;    ^- 

of  the  timber  :z  : ir       iiir         _  ^       :  n;:     i   :    1^ 
to  the  payment  : :  : :  e     ::::;;.     .:  ;    .  1 :    ;  :  _  -  :  i ; 
will  operate  to   n-.-.r-    :-'..    :'.     1t    ;   -i?^   :t:::t      r-s:-  1; 
15  per  cent     :-   '':-"■    -■;-:. l;   ::^--;:_    -ir    .;r:yii7    :-    :- 
qtlired  to  •::-.--:'-  z.\         :it    _  ::s:^t   ^::    .-.W    -..  —  -^ 

cut,  and  tt-  :  -  i:;     -  5 

are  rigidly  ^"  -r::;.-- 

der  theredr- :  '  :-->:■;-=:'  .:::::::;:;;;  riAV::- 

Lng  in  S--  -  5 

for  rec-  -     :  ;         ^ 

interes'  ^iii^^i  iscsos.  ;ui  ii  sj^ic-^iu  s;;:;™.ci£E.i  ta 

exhaus:  is. 

TIMBER  VALrES 
It  is  now  a  matter  of  common  knowledse  that  stand- 
ing timber  is  becoming  more  scarce  and  higher  In  marb^ 
price.  This  increase  in  Talues  has  bem  e^edally  mailDed 
within  the  last  three  years,  owing  to  the  rai^  depletion 
of  the  forests  to  supply  the  constantly  increasing  demand 


376  TIMBER  BONDS 

for  lumber.  The  following  is  taken  from  statistics  of  the 
Forest  Service,  United  States  Department  of  Agriculture. 
The  consumption  of  lumber  per  capita  is  greater  now  than 
ever  before,  and  the  timber  of  this  country  is  being  con- 
sumed three  to  four  times  as  fast  as  its  natural  increase. 
The  increase  in  population  from  1880  to  1900  was  52  per 
cent,  but  the  increase  in  the  lumber  cut  was  94  per  cent. 
Yellow  pine  is  still  far  in  the  lead  as  a  lumber  producer, 
supplying  about  33  per  cent  of  the  total  cut.  Second  in 
importance  is  Douglas  fir,  which  furnished  13.2  per  cent, 
followed  by  white  pine  with  12.2  per  cent. 

During  the  period  from  1899  to  1906 — 
The  Increase  in  Production  of 

•   Yellow  Pine  was 20.7  per  cent 

Douglas  Fir  was 186.2  per  cent 

Redwood  was    83.2  per  cent 

Cedar  was    53.7  per  cent 

Spruce  was    1.3  per  cent 

Hemlock  was 3.1  per  cent 

Western  Pine  was 46.9  per  cent 

Cypress  was  69.3  per  cent 

The  Decrease  in  Production  of 

White  Pine  was 40.8  per  cent 

Poplar  was  38.7  per  cent 

The  Increase  in  Value  of 

Yellow  Pine  was 77  per  cent 

Douglas  Fir  was 63  per  cent 

Redwood  was   64  per  cent 

Cedar  was   66  per  cent 

Spruce  was  53  per  cent 

Hemlock  was   54  per  cent 

Western  Pine  was 44  per  cent 

C3^ress  was   64  per  cent 

The  Increase  in  Value  of 

White  Pine  was 45  per  cent 

Poplar  was   73  per  cent 

With  an  increasing  demand  for  lumber  products  and  a 
decreasing  supply  of  the  raw  material — standing  timber — 
it  is  evident  that  the  values  of  timber  lands  will  continue 
to  increase.  There  is  today  no  commodity  more  stable 
in  price  than  timber  lands,  and  consequently  no  security 
upon  which  money  can  be  loaned  with  greater  safety. 

FIRE  HAZARD. 
It  is  well  known,  generally,  that  a  redwood  forest  has 
never  been  destroyed  by  fire.     There  is  no  fire  hazard  what- 


BOND  CIRCULARS  377 

ever  in  redwood  timber.  The  lands  of  the  C.  A.  Smith 
Timber  Company,  in  Oregon,  are  located  adjacent  to  the 
Pacific  Ocean  in  what  is  known  as  the  fog  belt.  During 
the  greater  part  of  the  year  the  lands  in  this  belt  are 
subject  to  heavy  rains  and  dense  fogs,  which  to  a  large 
extent  eliminates  the  fire  hazard.  These  lands  differ  en- 
tirely in  this  respect  from  the  timber  lands  located  on  the 
east  side  of  the  mountain  range. 

In  regard  to  the  sugar  and  California  white  pine,  we 
quote  from  a  bulletin  issued  by  the  Forest  Service:  "The 
power  of  mature  sugar  pine  to  resist  fire  is  sometimes 
under-rated,  for  in  this  respect  it  far  surpasses  eastern 
white  pine  and  compares  favorably  with  most  of  its  asso- 
ciates. Mature  trees  are  very  rarely  killed  by  fire,  unless 
it  should  get  into  the  crown,  and  although  sugar  pine  has 
a  much  thinner  bark  than  either  yellow  pine  or  Douglas 
spruce,  it  ranks  well  up  in  the  list  of  fire  resistance,  the 
trees  usually  continuing  to  flourish  without  apparent  per- 
manent injury  long  after  the  butt  has  been  badly  burned." 
The  danger  from  fire  has  been  greatly  lessened  also  by  the 
great  care  exercised  by  the  lumbermen  generally  to  protect 
their  timber  holdings.  The  C.  A.  Smith  Timber  Company 
and  other  large  holders  of  timber  lands  on  the  coast  have 
organized  fire  patrol  systems  which  co-operate  with  the  fire 
patrol  system  of  the  Government  in  the  Forest  Reserves  to 
guard  against  any  possibility  of  fire.  There  are  no  indi- 
cations of  a  destructive  fire  ever  having  gone  through  the 
forests  covered  by  this  bond  issue.  Further  particulars  on 
this  subject  will  be  sent  upon  request.       • 

DATES  OF  PAYMENT. 

The  bonds  are  issued  in  denominations  of  $1,000  and 
$500  each,  and  are  due  and  payable  each  six  months.  (See 
first  page.)  All  or  any  of  the  bonds  may  be  paid  at  any  in- 
terest period  prior  to  maturity  on  sixty  days'  notice  at  a 
premium  of  3  per  cent  and  accrued  interest. 


Prices  of  bonds  for  long  or  short  time,  par  and  accrued 
interest,  yielding  six  per  cent. 


The  above  statements  are  based  on  information  and  data 
believed  by  us  to  be  trustworthy  and  reliable,  and  while 
not  guaranteed  by  us,  have  been  accepted  and  acted  upon  by 
us  in  the  purchase  and  appraisal  of  the  bonds  and  the 
property  securing  the  same. 


378  TIMBER  BONDS 

C.  A.  SMITH  TIMBER  COMPANY, 
411  Andrus  Building. 

C.  A.   Smitli,  President. 

Minneapolis,  Minn.,  Feb.  28,  1908. 
Messrs.  Clark  L.  Poole  &  Co., 

First  National  Bank  Bldg.,  Chicago,  111. 
Gentlemen: 

Complying  with  your  request  for  general  information 
regarding  the  C.  A.  Smith  Timber  Company  and  the  C.  A. 
Smith  Lumber  &  Manufacturing  Company,  of  Marshfleld. 
Oregon,  as  well  as  myself,  I  am  pleased  to  submit  the  fol- 
lowing: 

The  C.  A.  Smith  Timber  Company  is  a  corporation  in- 
corporated under  the  laws  of  the  State  of  Oregon  for  three 
and  one-half  million  dollars,  fully  paid  up.  Its  general 
office  is  at  Marshfleld,  Oregon.  The  officers  of  the  company 
are: 

C.  A.  Smith,  President,  Minneapolis.  Minn. 

J.  E.  Oren,  Vice-President,  Marshfleld,  Oregon. 

C.  L.  Trabert,  Secretary,  Minneapolis,  Minn. 

A.  H.  Powers,  Treasurer.  Marshfleld,  Oregon. 

This  company  owns  the  lands  covered  by  the  bond  issue 
of   $3,000,000,   constituting   about 

30,480  acres  in  Humboldt  County,  California. 
45,320  acres  in  El  Dorado  County,  California. 
61,760  acres  in  Coos,   Douglas  and  Curry  Counties, 

Oregon. 
10,640  aci-es  in  Lincoln  County,  Oregon. 
8,000  acres  Sugar  and  Yellow  Pine  Timber  leases 

in  El  Dorado  County,  California. 


Total,  156,200  acres. 

The  timber  on  these  lands  has  been  thoroughly  and  care- 
fully looked  over  and  estimated  by  men  in  our  employ,  most 
of  whom  have  been  in  our  employ  in  Minnesota  for  a  long 
term  of  years,  and  according  to  such  estimates  they  contain 
approximately 

1,800,000,000  feet  of  Redwood. 
1,100,000,000  feet  of  Sugar  and  White  Pine. 
5,100,000,000  feet  of  Fir,   Spruce  and  other  kinds  of 
Timber. 


Total,  8,000,000,000  feet. 

According  to  the  best  judgment  and  belief  of  the  esti- 
mators as  per  their  certificates  attached  to  said  estimates 
filed  with  you  and  the  Trustees,  said  timber  will  cut  twenty 


BOND   CIRCULARS  379 

to  twenty-five  per  cent  more  than  such  estimates.  From 
re-estimates  which  we  have  had  made  during  the  last  year 
and  from  our  experience  in  cutting  timber  in  the  vicinity 
and  from  the  judgment  of  other  people  thoroughly  experi- 
enced in  cutting  these  different  classes  of  timber,  I  am 
satisfied  that  it  will  cut  even  considerably  more. 

As  to  the  present  value  of  this  timber,  it  is  very  diffi- 
cult to  state.  I  believe,  however,  that  the  redwood,  sugar 
and  white  pine  could  readily  be  sold  on  a  basis  of  more 
than  $2.00  per  thousand  feet,  and  the  fir,  spruce  and  other 
timber  on  a  basis  of  more  than  $1.00  per  thousand  feet. 
This  would  mean,  approximately,  based  on  the  above  esti- 
mates: 

1,800,000,000  feet  of  Redwood,  at  $2.00  per  thou- 
sand   feet    $  3,600,000 

1,100,000,000  feet  of  Sugar   and    White   Pine,    at 

$2.00  per  thousand   feet 2,200,000 

5,100,000,000  feet  of  Fir,   Spruce  and   other  tim- 
ber, at  $1.00  per  thousand  feet.     5,100,000 

Or  a  total  of $10,900,000 

This  price  I  consider  most  exceedingly  conservative 
and  do  believe  that  these  lands  and  timber  could  be  sold 
even  now  at  considerably  higher  prices  than  above  stated, 
but  I  would  not  accept  twice  said  amount. 

As  an  indication  of  the  values  of  redwood,  it  might  be 
stated  that  lands  in  the  same  territory  where  these  lands 
are  located  and  intermingled  with  these  lands,  are  held  at 
from  $100  to  $200  per  acre,  making  an  average  of,  say, 
about  $3.00  per  thousand  feet  of  timber.  Lands  inter- 
mingled with  the  sugar  and  white  pine  lands  are  held  at 
from  $50.00  to  $100.00  per  acre,  making  an  average  of. 
say,  about  $4.00  per  thousand  feet  of  timber.  A  tract  of 
two  sections  of  fir  and  spruce  located  in  Coos  County  and 
in  the  same  territory  where  -these  lands  are  located,  but. 
however,  somewhat  more  convenient,  were  sold  this  winter 
on  a  basis  of  $2.60  per  thousand  feet. 

A  contract  has  been  entered  into  between  the  C.  A. 
Smith  Timber  Company  and  the  C.  A.  Smith  Lumber  & 
Manufacturing  Company,  extending  over  a  period  of  thirty 
years,  wherein  the  C.  A.  Smith  Lumber  &  Manufacturing 
Company  agrees  to  cut  of  the  timber  covered  by  the  bond 
issue  at  least  fifty  million  feet  a  year  and  pay  to  the  C.  A. 
Smith  Timber  Company  on  a  basis  of  $5.50  per  thousand 
for  Port  Orford  Cedar  and  $2.75  per  thousand  for  spruce, 
fir  and  other  timber  during  this  year,  with  an  advance  of 
fifty  cents  and  twenty-five  cents  per  thousand  respectively 


380  TIMBER  BONDS 

each  year.  I  believe  that  for  a  long  term  of  years  this 
represents  a  fair,  conservative  value  and  as  equitable  a 
deal  for  both  parties  as  can  be  made  at  present. 

In  a  new  country,  where  lumbering  operations  are  just 
beginning  or  are  being  carried  on  on  a  small  scale,  it  is 
difficult  to  fix  actual  values  of  timber.  It  might  be  proper 
for  me  to  state  that  in  the  years  1890  to  1893,  I  purchased 
in  the  State  of  Minnesota  considerably  over  one  hundred 
thousand  acres  of  timber  lands  at  a  cost  averaging  less 
than  $1.00  per  thousand  feet  for  the  timber.  The  most 
convenient  and  best  of  this  timber  is  now  cut,  but  the 
balance,  averaging  poorer  in  quality,  more  remote  and 
consequently  much  more  expensive  to  cut  and  bring  to 
the  mills,  is  today,  in  my  judgment,  well  worth  more  than 
$12.00  per  thousand  feet. 

As  the  timber  resources  of  the  country  are  being  de- 
pleted very  rapidly,  much  more  rapidly  than  in  years  past, 
I  believe  that  the  increase  in  values  in  the  timbered  dis- 
tricts on  the  Pacific  Coast,  where  operations  are  just  now 
beginning  to  be  carried  on,  will  be  more  rapid  than  in  the 
last  fifteen  years  in  the  State  of  Minnesota. 

A  very  peculiar  feature  in  regai'd  to  redwood  timber, 
and  which  should  appeal  to  investors,  and  especially  to 
those  who  are  not  familiar  with  timber  generally,  is  that 
it  is  practically  indesructible.  A  redwood  tree  cannot  be 
killed  by  fire.  If  it  is  blown  down  or  severed  from  the 
stump  and  lies  on  the  ground  for  generations,  it  can  still 
be  cut  into  lumber  practically  as  good  as  that  from  the 
standing  tree. 

The  sugar  and  white  pine  is  very  similiar  to  the  white 
pine  of  Michigan,  Wisconsin  and  Minnesota,  except  that  it 
grows  much  larger  and  consequently  will  cut  out  several 
times  more  of  the  higher  grades  of  lumber  than  the  timber 
in  these  states.  As  the  white  pine  in  these  white  pine 
states  is  being  cut  out  very  rapidly  and  the  sugar  and  white 
pine  of  the  Sierra  2kIountains^  in  California  (which,  by  the 
waj-,  is  quite  limited),  is  the  only  timber  of  that  class,  it 
can  readily  be  seen  that  this  timber  must  enhance  in  value 
very  rapidly. 

Regarding  the  C.  A.  Smith  Lumber  and  Manufacturing 
Company,  permit  me  to  state  that  this  company  was  or- 
ganized with  $750,000  capital,  all  paid  in,  to  be  purely  a 
manufacturing  and  mercantile  company.  A  small  mill, 
which  is  covered  by  the  bond  issue,  was  purchased  about 
a  year  ago  and  has  been  in  full  operation,  manufacturing 
from  two  to  two  and  one-half  million  feet  per  month.  The 
erection  of  a  new  mill  and  a  complete  lumber  manufactur- 
ing plant  was  begun   about  ten   months  ago.   and   is  now 


BOND   CIRCULARS  381 

completed  at  a  cost  of  upwards  of  $400,000.  This  plant 
is  also  covered  by  the  bond  issue.  In  building  this  plant 
it  has  been  done  with  a  great  deal  of  study  and  care  to 
make  it  as  complete  and  economical  in  every  way  possible 
as  time  and  money  could  accomplish.  In  connection  with 
this  plant  a  distributing  yard  is  being  put  in  on  Suisan 
Bay,  near  San  Francisco.  A  steamer  has  been  built  at  a 
cost  of  $300,000  by  this  company,  with  a  carrying  capacity 
of  two  and  one-quarter  million  feet,  the  intention  being  to 
use  this  exclusively  for  the  carrying  of  the  product  from 
this  plant  to  the  distributing  yard.  This  company  also 
owns  two-thirds  interest  in  the  Smith-Powers  Logging  Com- 
pany, which  is  incorporated  with  a  paid-up  capital  of 
$150,000,  for  the  exclusive  purpose  of  logging  the  timber 
covered  by  the  contract  between  the  C.  A.  Smith  Timber 
Company  and  the  C.  A.  Smith  Lumber  &  Manufacturing 
Company,  and  deliver  such  logs  to  the  mills  of  the  Lumber 
&  Manufacturing  Company.  I  firmly  believe  that  the  C.  A. 
Smith  Lumber  &  Manufacturing  Company  will  be  able  to 
deliver  the  lumber  at  the  distributing  yard,  paying  all  ex- 
penses for  transportation,  manufacturing,  logging  and  for 
the  timber  as  per  above  agreement,  at  a  net  cost  of  less 
than  $8.00  per  thousand  feet.  At  the  very  lowest  price 
which,  as  I  understand,  has  ever  prevailed  in  California 
for  fir  and  spruce,  this  lumber  should  average  not  less 
than  $12.00  per  thousand  feet,  and.  at  a  fair  average  price, 
from  $15.00  to  $18.00  per  thousand  feet. 

As  the  payment  of  the  bonds  and  interest  are  guar- 
anteed by  the  writer,  permit  me  to  state  that,  with  the 
exception  of  a  small  amount  owned  by  the  men  directly  con- 
nected with  the  management  of  the  C.  A.  Smith  Lumber  & 
Manufacturing  Company,  I  am  the  sole  owner,  as  I  am  also 
of  the  C.  A.  Smith  Timber  Company.  I  also  own  other 
large  tracts  of  timber  in  the  States  of  Oregon  and  Califor- 
nia, which  are  not  covered  by  the  bond  issue,  but  located 
largely  in  the  same  territories.  I  am  also  the  principal 
owner  of  the  C.  A.  Smith  Lumber  Company  and  the  C.  A. 
Smith  Timber  Company,  of  Minneapolis,  two  A^ery  success- 
ful companies,  and  have  interests  in  other  manufacturing 
and  mercantile  companies,  banks,  etc.  The  proceeds  of  the 
bonds  will  be  used  exclusively  for  the  payment  of  the  float- 
ing debts  as  far  as  may  be  necessary,  and  principally  for 
the  building  of  two  other  lumbering  plants  with  necessary 
railroads  for  the  manufacturing  of  the  timber  covered  by 
the  bond  issue.  This  bond  issue  will  also  be  a  first  lien  on 
the  new  lumbering  plants  and  railroads  above  referred  to. 

Yours  truly, 
(Signed)  C.   A.  SMITH. 


382  TIMBER  BONDS 

Law  Office   of  John   Lind  and   A.   Ueland,   401    New   York 
Life   Building,    Minneapolis. 

May  5.  1908. 
Clark  L.  Poole  &  Co.. 

Bankers, 

Chicago,  111. 
Gentlemen : 

In  answer  to  your  favor  of  May  3rd,  permit  us  to  state 
that  we  have  no  hesitancy  in  recommending  the  bonds  is- 
sued by  the  C.  A.  Smith  Timber  Company  to  our  friends 
and  clients  for  investment.  Some  years  ago  we  examined 
the  titles  to  nearly  all  of  the  lands  in  the  State  of  Califor- 
nia, and  to  some  of  those  in  the  State  of  Oregon  covered  by 
the  trust  deed  to  secure  these  bonds.  The  titles  examined 
we  found  good.  We  are  also  familiar  with  the  character 
and  value  of  the  timber  on  these  lands,  and  we  regard  the 
estimates  and  valuations  contained  in  your  prospectus  as 
well  warranted  and  conservative.  We  believe  the  security 
absolutely  good,  and  we  also  regard  Mr.  C.  A.  Smith's  per- 
sonal guaranty  of  the  bonds  sufficient  in  itself  to  insure 
their  prompt  payment  when  due.  Yours  truly, 

(Signed)  JOHN  LIND  and  A.  UELAND. 

CLARK  L.  POOLE  &  CO.. 

Bankers,  Timber  Bonds, 

Long   Distance   Telephone,    Central    4844.      First    National 

Bank  Bldg.,  Chicago. 

EXHIBIT  NO.  7. 
No.    304. 

OTIS   &   HOUGH,    INVESTMENT    BANKERS. 

Cleveland.  Ohio. 

We  own  and  offer  subject  to  sale  or  change  in  price:  $425,- 
000  First  Mortgage  6  Per  Cent  Serial  Gold  Bonds  of 

AMERICAN    LUMBER    COMPANY. 


Detroit  Trust  Company,  Detroit,   Michigan,  Trustee. 


DESCRIPTION   OF   BONDS. 
Dated  September  1st,  1909.    Denominations  $500  and  $1,000. 
Principal  and  semi-annual  interest  (January  and  July 
1st)  payable  at  the  Office  of  the  Detroit  Trust  Company, 


BOND   CIRCULARS  383 

Trustee,  Detroit,  Michigan.  Bonds  are  redeemable  at 
any  bond  paying  period,  at  103  and  interest,  after 
forty-five  days'  published  notice.  The  Company  is  com- 
pelled to  pay  into  the  Sinking  Fund  $2.00  per  thou- 
sand feet  of  lumber  cut.  This  payment  is  made  quar- 
terly. Bonds  may  be  registered  as  to  principal. 
Maturities: 

$10,000  Jan.  1,  1911  35.000  Jan.  1,  1915  45,000  Jan.  1.  1919 

10,000  Jan.  1,  1912  43,000  Jan.  1, 1916  45,000  Jan.  1, 1920 

25,000  Jan.  1.1913  42,000  .Ian.  1, 1917  50,000  Jan.  1, 1921 

30,000  Jan.  1,  1914  40,000  Jan.  1,  1918  50,000  .Jan.  1,  1922 

Price — 101  and  Interest. 

CAPITALIZATION. 

The  Company  is  organized  under  the  laws  of  the  State  of 
New  Jersey,  and  capitalized  as  follows: 
Capital  Stock  authorized  and  issued.  .8.000,000 
Bonds  authorized  and  issued 650.000 

LEGALITY. 

The  legality  of  the  mortgage  securing  this  issue  of 
bonds  has  been  approved  by  Messrs.  Goulder,  Holding  & 
Masten.  of  Cleveland.  Ohio.  It  is  a  first  lien  on  all  of  the 
property  now  owned  or  hereafter  acquired  by  the  Company. 

PROPERTY. 

The  property  of  the  Company  consists  of  over  288.783 
acres  of  land,  timbered  with  white  pine,  situated  in  the 
counties  of  McKinley  and  Valencia.  New  Mexico,  and  115 
acres  of  real  estate,  near  Albuquerque,  upon  which  are 
erected  the  mills,  factories,  etc.  The  foregoing  lands  are 
owned  in  fee.  The  Company  also  owns  thirty  miles  of 
standard  gauge  railroad,  with  ample  car  and  motive  power 
for  its  operation;  also  all  additional  logging  equipment 
necessary  for  the  prosecution  of  its  business. 

The  resources  of  the  Company,  as  per  their  financial 
statement  of  September  30th,  1909,  were  as  follows: 

Timber    lands,    real    estate,    construction     and 

equipment    $8,516,842.86 

Bills  and  accounts  receivable,  cash  and  prepaid 

accounts     166,276.05 

Inventory  of  lumber,  material  and  supplies,  etc.      394,206.54 

Total     $9,077,325.45 


384  TIMBER  BONDS 

The  proceeds  of  this  issue  of  bonds  has  canceled  all  of 
the  liabilities  of  the  Company,  other  than  its  capital 
shares,  and  this  issue  and  the  Company  will  have  on  hand 
a  working  capital  in  cash  of  about  $100,000,  in  addition  to 
its  accounts  receivable  and  supplies  on  hand. 

The  Company  earned  for  the  year  ending  October  31st, 
1909,  $100,492.35,  including  all  interest  charges,  which  is 
equivalent  to  about  three  and  one-half  times  the  interest 
on  its  bond  issue. 

The  estimated  amount  of  timber  on  the  Company's  prop- 
erty is  1,400,000,000  feet  of  merchantable  pine.  At  Albu- 
querque, New  Mexico,  the  Company  has  one  of  the  finest 
lumber  manufacturing  plants  in  the  country.  In  addition 
to  a  saw  mill  of  50,000,000  feet  per  annum  capacity,  it  has 
a  lath  and  bi-products  mill,  box  factory  and  door  factory, 
and  carries  on  hand  about  20,000,000  feet  of  lumber  of  all 
grades.  The  land  owned  by  the  Company  is  equivalent  to 
about  thirteen  townships  and  is  said  to  be  the  largest  pri- 
vate holding  of  white  pine  in  the  United  States. 

In  order  to  appreciate  the  magnitude  of  this  property, 
we  may  state  that  the  Company  is  compelled  to  carry  up- 
wards of  $800,000-  of  insurance  on  its  mills  and  manufac- 
tured products. 

Speaking  of  the  timber  land,  our  expert  who  made  the 
investigation  for  us,  reports  that  there  is  no  danger  of  fire, 
because  the  woods  are  substantially  free  from  underbush 
and  rubbish. 

Concerning  the  logging,  he  has  to  say:  "The  land 
lays  nicely  for  logging  and  the  railroad  can  be  built  cheap- 
ly, and  the  logging  to  the  railroad  can  be  done  very  rea- 
sonably." 

In  addition  to  the  timber  owned  in  fee,  the  Company 
has  contracted  for  approximately  500,000,000  feet  (B.  M.), 
and  in  addition  to  this,  there  is  an  amount  of  timber  equal 
to  or  greater  than  the  before  mentioned  amount  of  timber 
contracted,  for  which  this  Company  is  the  logical  market. 
The  supply  of  timber  in  sight  will  afford  this  Company 
material  for  operation  for  the  next  thirty-five  to  fifty 
years. 

MARKET. 

The  Company  enjoys  a  very  wide  market  for  its  prod- 
ucts. The  great  lumber-using  States  of  Kansas,  Missouri, 
Iowa,  Colorado,  Oklahoma  and  Texas  are  within  easy  ship- 
ping distance,  and  for  its  high  grade  of  products,  it  com- 
mands a  large  export  trade,  via  Galveston.  A  large  quan- 
tity of  lumber  is  also  sold  in  old  Mexico  and  some  on  the 
Pacific  Coast. 


BOND  CIRCULARS  385 

TITLES. 

The  titles  to  the  Company's  property,  in  so  far  as  the 
timber  lands  are  concerned,  are  just  two  transfers  from  the 
Federal  Government,  and  all  their  titles  are  good. 


MANAGEMENT. 

The  officers  and  directors  of  the  Company  are  as  fol- 
lows: 

Dr.  W.  H.  Sawyer,  Hillsdale,  Mich.,  Vice-President. 
Charles  F.  Wade,  Albuquerque,  N.  M.,  General  Manager. 
Wm.  M.  Reynolds,  Cleveland,  Ohio,  Secretary. 

DIRECTORS. 

C.  A.  Black,  Detroit,  Mich.      H.  D.  Goulders,  Cleveland,  O. 
J.  M.  Mulkey,  Detroit,  Mich.   Frank  Billings,   Cleveland,©. 
George  Peck,  Detroit,  Mich.     P.  L.  Webb,  Warren,  O. 
F.    M.    Stewart,    Hillsdale,      Laurence    DeGolyer,   Chicago, 

Mich.  111. 

A.  F.  Freeman,  Ann  Arbor,  A.  R.  Fay,  Chicago,  111. 

Mich.  H.  M.  Picking,  East  Orange, 

J.  H.  Wade,  Ann  Arbor,  Mich.     N.  J. 
C.    H.    Winchester,    Elkhart,  N.  J.  Haywood,  New  York 

Ind.  City. 

C.  A.  Otis,  Cleveland,  O. 

These  men  are  all  experienced  business  men,  and  a 
number  of  them  have  had  large  experience  in  the  opera- 
tion of  timber  properties. 

INVESTIGATION. 

All  the  conditions  calculated  to  affect  the  value  of 
these  securities  have  been  examined  into  by  our  Mr.  C. 
A.  Otis,  and  we  have  had  expert  advice  of  Mr.  George  E. 
Breece,  President  of  the  West  Virginia  Timber  Company, 
Charleston,  W.  Va.  They  unhesitatingly  recommend  these 
bonds. 

The  Company,  in  the  acquisition  of  the  propertly,  had 
the  advice  of  Mr.  Martin  McDermott,  formerly  of  Luding- 
ton,  Michigan,  now  of  Ashland,  Wisconsin,  who  is  connect- 
ed with  the  Edward  Hines  Lumber  Company. 

RECAPITULATION. 

We  wish  to  direct  your  particular  attention  to  the  fol- 
lowing strong  points  in  connection  with  this  issue: 


386  TIMBER  BONDS 

1.  The  bond  issue  is  less  than  one-tenth  of  the  esti- 
mated value  of  the  property. 

2.  The  bond  issue  is  on  a  stumpage  basis  of  less  than 
50c  per  thousand. 

3.  The  quick  assets  of  the  Company  amount  to  about 
the  bonded  debt. 

4.  The   insurance   in   force   is   more  than   the   bonded 
debt. 

5.  The  sinking  fund  is  suflScient  to  pay  the  entire  bond 
issue  more  than  four  times  over. 

6.  The  favorable  interest  return. 


Orders  may  be  telegraphed  at  our  expense. 

Bonds  will  be  shipped  to  any  Bank,  express  prepaid, 
draft  payable  in  New  York  or  Cleveland  Exchange. 

Statements  of  fact  are  statements  of  the  Company  and 
believed  by  us  to  be  true.  We  recommend  these  bonds  as 
a  safe  and  conservative  investment. 


OTIS  &  HOUGH, 

Investment  Bankers, 

Cuyahoga  Bldg.,  Cleveland,  0. 


EXHIBIT    NO.    8. 

Circular  No.  702— July,  1910. 

PEABODY,  HOUGHTELING  &  CO., 

105   South  La  Salle  Street,  Chicago. 

Established  1865. 

Cable  Address:  "Hought,"  Chicago.    Codes  Used:   Lieber 

and  A.  B.  C.  5th  Edition. 

$1,500,000  First  Mortgage  6  Per  Cent  Serial  Gold  Bonds,  is- 
sued by  the 

STEARNS  COAL  &  LUMBER  COMPANY 

of  Stearns,  Kentucky. 

Dated  July  1st,  1910.  Payable  in  Series  as  below.  Re- 
deemable in  the  reverse  of  their  Numerical  Order  on 
interest  dates  at  103  and  Interest.  Coupon  Bonds  of 
$1,000   and  $500   each,  with   Privilege  of  Registration 


BOND  CIRCULARS 


387 


as  to  Principal.  Principal  and  Semi-Annual  Interest 
payable  at  the  First  National  Bank  of  Chicago  and  the 
First  National  Bank  of  New  York.  First  Trust  and 
Savings  Bank,  Chicago,  Trustee. 


DISPOSITION    OF   BONDS. 

Now  Issued:  To  retire  all  the  indebtedness  of  the 
Company;  to  extend  railway;  to  increase  saw 
mill  and  coal  mine  equipment  and  to  furnish 
working  capital  $1,500,000 

Reserved:  Subject  to  the  written  approval  of 
Peabody,  Houghteling  &  Co.,  for  future  ex- 
tensions and  improvements  and  for  the  acqui- 
sition of  additional  timber  and  other  proper- 
ties at  not  to  exceed  50  per  cent  of  the  actual 
cash  cost  of  same  and  for  the  construction  of 
additional  railway  at  not  to  exceed  75  per 
cent  of  the  actual  cash  cost  of  main  line  fully 
equipped    500,000 


Total  authorized  issue   $2,000,000 


Amount. 

$50,000 
50,000 
50,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
60,000 
75,000 
75,000 
75,000 
75,000 
75,000 
75,000 
75,000 
75,000 
75,000 
75,000 


MATURITIES. 
Term. 


1  year 

114  years 

2  years 
214  years 

years 
years 
years 
4i/l>  years 
5  years 
5l{y  years 
years 
years 
years 
7^2  years 
years 
years 
years 
years 
years 


Date  Maturing. 


3 

3V, 
4 


6 
61/. 

7 


81/2 

9 

10 


101/^  years 

11  years 
IIV2  years 

12  years 


July 
January  1 
July  1 
January  1 
July  1 
January  1 
July  1 
January  1 
July 
January 
July 
January 
July 
January 
July  1 
January  1 
July  1 
January  1 
July 
January 
July 
January 
July 


1911 
1912 
1912 
1913 
1913 
1914 
1914 
1915 
1915 
1916 
1916 
1917 
1917 
1918 
1918 
1919 
1919 
1920 
1920 
1921 
1921 
1922 
1922 


388  TIMBER  BONDS 

Bonds  reserved  for  future  issue,  shall,  if  issued,  mature 
at  the  rate  of  $100,000  every  six  months,  beginning  Janu- 
ary  1st,   1923. 

These  bonds  are  secured  by  an  absolute  first  mortgage 
upon  all  the  property  now  owned  and  that  may  hereafter 
be  acquired  by  the  Stearns  Coal  &  Lumber  Company,  and 
also,  through  deposit  with  the  Trustee  of  its  entire  issued 
capital  stock  and  total  closed  issue  of  first  mortgage  bonds, 
upon  all  the  property  now  and  hereafter  owned  by  the 
Kentucky  &  Tennessee  Railway  Company. 


GUARANTEE. 

These  bonds  are  guaranteed  both  as  to  principal  and 
interest  by  the  actual  endorsement  on  each  bond  of  Mr. 
Justus  S.  Stearns,  President  of  the  Stearns  Coal  &  Lumber 
Company,  who  is  in  receipt  of  a  large  income  and  whose 
net  worth  in  good  realizable  assets,  entirely  outside  of  his 
interest  in  this  Company,  is  approximately  $2,500,000. 


VALUATION  OF  SECURITY. 

Based  upon  the  expert  reports  of  Mr.  J.  P.  Brayton  as  to 
the  timber,  Mr.  J.  K.  Seifert  as  to  the  coal  and  Messrs. 
Price,  Waterhouse  &  Company  as  to  the  Company's  ac- 
counts, we  value  the  property  securing  these  bonds  as  fol- 
lows: 

Land  and  Timber  owned  in  fee $3,013,197.50 

Coal  owned  in  fee,  and  leased 3,000,000.00 

Kentucky   &   Tennessee   Railway 640,143.09 

Coal  Mines   218,500.16 

Saw  Mill  and  Equipment 387,401.59 

Working    Capital     250,000.00 

Total  valuation  of  assets $7,509,242.34 


EARNINGS. 

Based  upon  our  investigation  of  the  Company's  opera- 
tions and  upon  the  additions  to  its  saw  mill,  coal  mines 
and  railway  to  be  immediately  provided  from  the  proceeds 
of  these  bonds,  we  estimate  the  Company's  average  annual 
net  earnings  and  sinking  fund  payments  as  follows: 


BOND  CIRCULARS  389 

Lumber  Department    $100,000.00 

Coal   Department    100,000.00 

Kentucky  &  Tennessee  Railway 35,000.00 

Commissary,  Rents,  etc 40,000.00 


Average  annual  net  earnings  applicable  to  pay- 
ment of  Bond  Interest $275,000.00 

Average  annual  Interest  Charge  on  this  entire 

issue  of  bonds   51,937.00 

Sinking    Fund    from    Lumber    Opera- 
tions     $120,000.00 

Sinking  Fund  from  Coal  Operations.     25,000.00 


Average  annual  sinking  fund  applicable  to  pay- 
ment of  Bond   Principal 145,000.00 

Average  annual  serial  payment  on  account  of 

Bond  Principal    125,000.00 

Combined    average    annual    net    earnings    and 

sinking  fund    420,000.00 

Combined   average   annual   Principal    and    Inter- 
est    requirements    176,937.50 

These  figures  are  based  on  an  average  annual  output  of 
20.000,000  feet  of  lumber  and  500,000  tons  of  coal.  The 
cost  of  production  and  selling  price  in  each  instance  are 
figured  on  a  most  conservative  basis  and  the  actual  annual 
average  results  during  the  life  of  these  bonds  should  ma- 
terially exceed  these  figures. 

SINKING  FUND. 

The  mortgage  securing  these  bonds  provides  that  on  or 
before  the  15th  day  of  each  month,  beginning  with  the 
month  of  August,  1910,  there  shall  be  deposited  with  the 
Trustee  a  sinking  fund  equivalent  to  five  cents  per  ton  on 
all  coal  mined  and  removed  from  the  Company's  property 
during  the  preceding  calendar  month,  and  also  that  a  sink- 
ing fund  on  all  timber  cut  and  removed  from  the  Com- 
pany's property  in  accordance  with  the  following  schedule, 
shall   be   likewise  deposited   with  the   Trustee. 

White   Oak    $  8.00  per  thousand  feet 

Red  Oak  5.00  per  thousand  feet 

Poplar    15.00  per  thousand  feet 

Chestnut    2.00  per  thousand  feet 

Yellow   Pine    3.00  per  thousand  feet 

White  Pine   7.00  per  thousand  feet 


390  TIMBER  BONDS 

Hemlock    3.00  per  thousand  feet 

Hickory    5.00  per  thousand  feet 

Beech    $  2.00  per  thousand  feet 

Ash    10.00  per  thousand  feet 

Timher  not  specified  above 4.00  per  thousand  feet 

Railroad  Ties 10  each 

Telegraph  Poles 25  each 

Hemlock  Bark   1.00  per  cord 

Oak  Bark  3.00  per  cord 

All  Other  Forest  Products 1.00  per  cord 

On  the  basis  of  these  figures,  the  removal  of  the  Com- 
pany's timber  would  produce  over  $3,000,000,  or  twice  the 
amount  of  the  outstanding  bonds,  while  the  exhaustion  of 
its  coal  properties  would  produce  over  $15,000,000,  or  ten 
times  the  amount  of  the  bonds. 


DESCRIPTION   OF   SECURITY. 

The  security  for  these  bonds  consists  of — 

(a)  67,981  acres  of  land  owned  in  fee  simble. 

(b)  18,000  acres  of  timber  owned  in  fee  simple. 

(c)  400,000,000  feet  of  White  Pine,  Hemlock  and  Hard- 
wood Timber  contained  in  (a)   and   (b). 

(d)  22,000  acres  of  coal  rights,  including  1,300  acres  of 
surface. 

(e)  300,000,000  tons  of  coal,  contained  in  (a)  and  (d). 

(f)  Five  (5)  modern  coal  mines  of  a  daily  capacity  of 
2,000  tons. 

(g)  Modern  saw  mill,  planing  mill,  dry  kilns  and  lum- 
bering equipment  of  a  daily  capacity  of  75,000  feet. 

(h)  Town  site  of  Stearns,  comprising  509  acres,  to- 
gether with  143  houses,  commissary,  office  buildings  and 
other  structures. 

(i)  The  Kentucky  &  Tennessee  Railway  and  complete 
equipment. 

(j)     Contracts,  rights  and  other  assets. 

The  main  body  of  land,  comprising  67,981  acres  owned 
in  fee  simple,  lies  in  practically  a  solid  body  in  Wayne 
County,  Kentucky,  and  in  Pickett,  Scott  and  Fentress  Coun- 
ties, Tennessee.  The  property  is  bounded  on  the  east  by 
the  Big  South  Fork  of  the  Cumberland  River,  and  is  all 
available  to  the  main  line  of  the  Queen  &  Crescent  Rail- 
way. This  property,  together  with  the  adjoining  18,000 
acres  on  which  the  Company  owns  the  timber  only,  con- 
tains, according  to  the  report  of  Mr.  J.  P.  Brayton: 


BOND  CIRCULARS  391 

TIMBER. 

White   Oak    126.725,000  feet 

Red   Oak    34.750,000  feet 

Poplar     45,550,000  feet 

Chestnut    41,700,000  feet 

Yellow  Pine    21,800.000  feet 

White  Pine  56.225,000  feet 

Hemlock    42,225,000  feet 

Hickory      6.610.000  feet 

Beech    15,795.000  feet 

Ash    925,000  feet 

Railroad    Ties    277,625 

Telegraph  Poles   80,380 

Hemlock    Bark    19,790  cords 

Oak  Bark    18,600  cords 

Other  Forest  Products 276,010  cords 

The  timber  is  of  excellent  quality,  is  easily  available  to 
the  Company's  mills,  is  practically  immune  from  fire  risk 
and  will  show  a  marked  increase  in  value  during  the  next 
ten  years. 

COAL. 

This  entire  tract  of  land  is  underlaid  with  some  300.- 
000.000  tons  of  steam  coal  of  an  excellent  quality.  The 
main  vein  averages  from  48  to  50  inches  in  thickness,  is 
remarkably  regular  in  formation,  with  sandstone  roof  and 
floor  and  ideal  working  conditions. 

A  careful  analysis  made  from  samples  taken  from  six 
different  locations  on  the  Company's  property,  shows  the 
following  average  anlysis: 

Commercial  Analysis    Dry  Analysis. 

Moisture     1.616  None 

Ash    9.893  10.050 

Volatile   Combustible   Matter.  39.538  40.186 

Fixed    Carbon    48.953  49.764 

Heat  Units    13171.6  13389.5 

Sulphur     3.248  3.298 

Phosphorus    None  None 

The  commercial  value  of  this  coal  for  domestic  and 
steam  purposes  is  clearly  shown  by  the  number  of  heat 
units,  which  is  unusually  high. 


392  TIMBER  BONDS 

i 

OPERATION. 

LUMBER. 

The  Company's  lumbering  equipment  consists  of  a  fine 
modern  double  cutting  band  and  resaw  mill  located  at 
Stearns,  together  with  dry  kilns,  planing  mill,  power  plant, 
machine  shop,  lumber  sheds  and  everything  necessary  for 
the  economic  manufacture  of  lumber  up  to  a  capacity  of 
75,000  feet  per  day  of  10  hours.  With  its  own  railroad 
connecting  its  mills  with  its  main  body  of  timber  and 
with  an  exceedingly  favorable  freight  rate  to  Cincinnati, 
the  principal  hardwood  market,  the  company's  location  is 
a  most  favorable  one  for  the  profitable  operation  of  a 
hardwood  lumber  business.  The  Company's  earnings  from 
this  source  will  naturally  vary  according  to  the  amount 
and  character  of  the  timber  manufactured,  but  should  not. 
In  any  event,  be  less  than  $5.00  per  thousand  feet  after 
making  proper  allowance  for  depreciation  and  maintenance 
of  plant  and  logging  outfit  and  after  payment  has  been 
made  to  sinking  fund  on  account  of  the  stumpage  cut  and 
removed. 

COAL. 

The  Company  has  now  in  actual  operation  five  devel- 
oped coal  mines  with  a  present  capacity  of  1,500  tons  per 
day.  The  operation  of  this  coal  is  of  the  simplest  character, 
consisting  entirely  of  drift  mining  and  obviating  the  neces- 
sity for  shafts,  which  are  expensive  to  build  and  expensive 
to  maintain.  Additional  equipment  will  be  immediately 
added  to  these  mines  to  bring  the  production  up  to  at  least 
2,000  tons  per  day  and  this  capacity  will  be  steadily  in- 
creased as  the  market  for  the  Company's  coal  extends. 

With  this  additional  equipment  and  increased  capacity, 
the  cost  of  putting  this  coal  on  cars,  according  to  the  re- 
port of  Mr.  J.  K.  Seifert,  should  not  exceed  80  cents  per  ton. 
The  Company's  entire  production  is  now  being  promptly 
absorbed  at  prices  netting  the  Company  from  $1.10  to  $1.35 
per  ton  f.  o.  b.  cars  at  mine.  The  Queen  &  Crescent  Rail- 
road has  established  at  its  own  cost  expensive  loading 
works  at  the  town  of  Stearns  for  coaling  its  locomotives 
and  this  Railroad  alone  purchases  from  the  Company  over 
200,000  tons  of  coal  per  annum  at  $1.35  per  ton  run  of 
mine.  The  Company  also  has  a  well  established  market 
for  its  product  for  domestic  use  along  the  entire  line  of  the 
Queen  &  Crescent,  Including  Chattanooga,  Tennessee;  Lex- 
ington, Kentucky,  and  as  far  north  as  Toledo,  Ohio.  One 
prominent  coal  and  iron  company  is  using  this  coal  with 


BOND   CIRCULARS  393 

complete  success  for  coking  purposes  and  there  is  a  grow- 
ing demand  for  the  Company's  product  both  for  steam,  do- 
mestic and  coking  purposes  as  far  south  as  Atlanta.  Under 
intelligent  mangement,  there  is  no  doubt  that  the  Company 
will  be  able  to  realize  a  net  profit  of  at  least  20  cents  per 
ton  on  its  entire  production. 

KENTUCKY  &  TENNESSEE  RAILWAY. 
With  the  completion  of  the  five-mile  extension  now  be- 
ing constructed,  the  Kentucky  &  Tennessee  Railway  will 
have  a  main  line  mileage  of  seventeen  miles  extending 
from  a  connection  with  the  Queen  &  Crescent  System  at 
the  town  of  Stearns,  in  a  Westerly  direction  into  the  main 
body  of  the  Company's  timber  and  coal  lands.  The  prop- 
erty is  constructed  and  equipped  in  an  unusually  substan- 
tial" manner,  a  large  part  of  the  roadbed  being  laid  with 
80-lb.  steel.  This  Railway  is  a  common  carrier,  doing  a 
general  freight  and  passenger  business,  receiving  its 
share  of  all  through  rates,  operating  under  a  published  tar- 
iff and  reporting  its  operations  to  the  Interstate  Commerce 
Commission.  The  property  serves  a  virgin  territory  of 
great  natural  wealth.  It  is  built  and  equipped  to  handle 
heavy  tonnage  and  it  will  be  extended  from  time  to  time 
as  the  development  of  the  Company's  property  and  the  de- 
mands of  other  shippers  may  warrant. 

IN  GENERAL. 

The  Company  owns  the  entire  town  site  of  Stearns, 
comprising  some  509  acres,  together  with  143  houses,  be- 
sides boarding  houses,  office  buildings  and  other  struc- 
tures. The  Company's  houses,  which  are  rented  to  its 
employes,  are  of  an  unusually  substantial  and  comfort- 
able character  and  indicate  the  care  exercised  in  housing 
and  providing  for  employes  in  the  most  liberal  manner. 
The  Company's  policy  in  this  respect  has  resulted  in  an 
adequate  supply  of  labor  at  fair  wages. 

The  principal  owners  of  this  property  are  men  of  large 
means,  who  have  been  uniformly  successful  in  their  various 
enterprises.  Their  personal  attention  to  the  affairs  of  this 
Company  is  an  assurance  of  energetic  and  conservative 
management. 

Our  recommendation  of  these  bonds  is  based  on  a  thor- 
ough investigation  of  the  security.  The  Company's  timber 
and  lumbering  operations  have  been  examined  by  the  well 
known  timber  expert,  Mr.  J.  P.  Brayton  of  Chicago.  The 
Company's  coal  properties  have  been  examined  by  Mr.  J. 
K.  Seifert,  who  is  not  only  a  technical  coal  expert,  but  a 
practical   mine  manager  of  many  years'  experience.     The 


394  TIMBER  BONDS 

Company's  accounts  have  been  audited  by  Messrs.  Price, 
Waterhouse  &  Company,  and,  in  addition,  the  whole  enter- 
prise has  been  checked  up  and  investigated  in  detail  by 
our  own  staff  experts.  Titles  to  the  Company's  property 
and  all  legal  procedure  in  connection  with  the  issuance 
of  these  bonds,  have  been  approved  by  Mr.  E.  E.  Barthell, 
of  Nashville,  Tennessee,  Messrs.  Bundy,  Travis  &  Mer- 
rick, of  Grand  Rapids,  Michigan,  and  by  our  own  attorneys. 

We  recommend  these  bonds  as  an  unusally  sound  and 
desirable  investment  for  the  following  reasons: 

First:  The  timber  security  alone  is  conservatively  val- 
ued at  twice  the  amount  of  the  bonds. 

Second:  The  coal  security  alone  at  the  nominal  valua- 
tion of  one  cent  per  ton  is  equivalent  to  twice  the  out- 
standing bonds. 

Third:  The  property  constitutes  one  of  the  largest 
and  most  valuable  coal  and  timber  holdings  in  one  owner- 
ship in  the  entire  South. 

Fourth:  The  serial  payments  on  account  of  Principal 
will  rapidly  increase  the  already  large  margin  of  security. 

Fifth:  The  Company's  earnings  and  sinking  fund  de- 
posits will  show  a  large  margin  over  both  Principal  and 
Interest  requirements. 

Sixth:  The  guarantee  of  Mr.  Justice  S.  Stearns  places 
an  additional  $2,500,000  of  good  assets  and  an  assured  in- 
come of  large  proportions  behind  these  bonds. 

Seventh:  The  ownership  of  the  Company  is  in  strong 
and  practical  hands,  assuring  conservative  and  successful 
management. 

The  bonds  will  be  ready  for  delivery  on  or  before  Sep- 
tember 1st. 

Price,  Par  and  accrued  interest. 

Delivery  will  be  made  at  any  bank  desired,  express  pre- 
paid. 

Telegraphic  orders  may  be  sent  at  our  expense. 

Applications  will  be  filled  in  the  order  in  which  they  are 
received. 

PEABODY,    HOUGHTELING   &   CO., 
105  S.  La  Salle  Street,  Chicago. 

EXHIBIT  NO.  9. 

Cable  address:     "Homcoy,"  Chicago.  Circular  No.  349. 

McCOY   &   COMPANY, 

INVESTMENT   BONDS, 

105  South  La  Salle  Street,  Chicago. 

$400,000  B.  &  S.  HEINEMANN  TIMBER  COMPANY 

(Wausau  and  Heineman,  Wis.) 


BOND  CIRCULARS  3»5 

FIRST  MORTGAGE  6  PER  CENT  SERIAL  GOLD  BONDS. 


Dated  June  1,  1909.  Maturing  in  series  as  below.  Callable 
on  December  1,  1910,  or  upon  any  subsequent  interest 
date,  at  102  and  interest.  Semi-annual  interest  payable 
at  the  Continental  National  Bank,  Chicago.  Coupon 
bonds  with  privilege  of  registration  as  to  principal. 
Denominations,  $500  and  $1,000.  Principal  payable  at 
the  office  of  the  Chicago  Title  and  Trust  Company, 
Chicago. 

Chicago   Title  and   Trust   Company   and  Wm.   C.   Niblack, 
Esq.,  Chicago,  Trustees, 


CAPITALIZATION. 

Capital   stock    $250,000 

Bonds  authorized  and  outstanding 400,000 

These  bonds  are  guaranteed,  both  as  to  principal  and 
interest,  by  Mr.  B.  Heinemann,  president  of  the  National 
German-American  Bank  of  Wausau,  Wis.,  and  by  Mr.  S. 
Heineman,  president  of  the  National  Bank  of  Merrill,  Wis. 

MATURITIES. 
$40,000  due  December  1,  1910  $40,000  due  December  1,  1915 
40,000  due  December  1,  1911  40,000  due  December  1,  1916 
40,000  due  December  1,  1912  40,000  due  December  1,  1917 
40,000  due  December  1,  1913  40,000  due  December  1,  1918 
40,000  due  December  1,  1914  40,000  due  December  1,  1919 
Price,  any  maturity:     Par  and  interest. 

MORTGAGE. 
This  issue  of  bonds  is  secured  by  a  first  and  closed 
mortgage  to  the  Chicago  Title  and  Trust  Company  and  Mr. 
Wm.  C.  Niblack,  trustees,  upon  29,920  acres  of  virgin  tim- 
ber lands,  located  in  Langlade,  Marathon  and  Lincoln  coun- 
ties, Wisconsin,  owned  in  fee  and  conservatively  estimated 
to  contain  207,458,000  feet  of  merchantable  timber,  besides 
270,515  cords  of  cord  wood;  44,950  cedar  telegraph  poles 
and  117,700  cedar  posts.  The  mortgage  is  also  a  first  lien 
upon  the  two  complete  saw  mill  plants  of  the  company, 
one  located  at  Lumberton,  four  miles  from  Antigo,  Wis.,  on 
the  Chicago  &  Northwestern  Railroad,  and  the  other  at 
Heineman,  Wis.,  on  the  Chicago,  Milwaukee  &  St.  Paul 
Railroad.  It  further  provides  that  these  plants  shall  be 
fully  insured  and  the  policies  deposited  with  the  trustees 
for  the  benefit  of  the  bondholders  during  the  life  of  any  of 
the  outstanding  bonds. 


396  TIMBER  BONDS 

AMOUNT  AND  VALUE  OF  TIMBER. 

The  property  has  been  carefully  and  conservatively 
cruised  by  Mr.  J.  P.  Brayton,  of  Chicago,  a  copy  of  whose 
report  is  on  file  in  our  office  and  may  be  seen  at  any  time. 
Mr.  Brayton  summarizes  his  report  and  valuation  of  the 
property  as  follows: 

J.  P.  Brayton,  Timber  Lands,  204  Dearborn  Street,  Chicago. 

July  28,  1909. 
Messrs.  McCoy  &  Company, 
181  La  Salle  Street, 

Chicago,  Illinois. 
Gentlemen: 

In  handing  you  my  detailed  report  and  cruise  of  the  B. 
&  S.  Heinemann  Timber  Company  lands,  I  desire  to  state 
that  I  found  practically  all  accessible  to  railroads  and 
spurs  thereon,  entailing  very  short  haulage.  Both  the 
Chicago,  Milwaukee  &  St.  Paul  and  the  Chicago  &  North- 
western railroads  have  installed  very  adequate  facilities 
for  inexpensive  logging  of  this  timber.  There  is  also  a 
large  proportion  of  the  timber  tributary  to  driving  streams 
which  run  through  the  properties. 

Nearly  all  of  the  timber  examined  is  located  on  level 
and  slightly  rolling  land,  and  the  property  is  so  grouped 
that  logging  operations  are  easily  contracted  at  a  nominal 
cost. 

I  summarize  the  value  of  the  property  as  follows: 
207,458,000   feet   of  good   merchantable   timber  at 

$4.00   per   M $    829,832 

Two  mill  plants,  with  railroad  facilities 150,000 

30,000  acres  of  land  in  fee,  at  $5.00  per  acre 150,000 

In  addition  to  the  above,  there  are  35.000  cords  of 
hemlock  bark  on  the  property,  which  at  the 

present  market  value  is  worth  at  least 70.000 

80,595  cords  of  pulp  wood  at  50c  per  cord 40,297 

45,000  cedar  poles  at  25c  per  piece 11,250 


$1,251,379 
Besides,  cedar  posts  and  cord  wood  in  large  quantities. 
In  my  opinion,  the  security  is  ample  for  a  loan  or  bond 
issue  of  $400,000. 

Yours  very  truly, 

(Signed)         J.   P.  BRAYTON. 

SINKING  FUND. 
The  mortgage,  under  careful  restrictions,  requires  a  de- 
posit in  advance  with  the  trustees  of  $4  for  each  one  thou- 
sand feet  of  timber  to  be  cut,  this  deposit  to  be  made  on 


BOND  CIRCULARS  397 

the  basis  of  the  amount  of  timber  found  on  each  forty  acres 
as  certified  to  by  Mr.  J.  P.  Brayton  in  his  report. 

GUARANTEE. 
The  bonds  are  unconditionally  guaranteed,  both  as  to 
principal  and  interest,  by  endorsement  on  each  bond  by 
Mr.  B.  Heinemann  and  Mr.  S.  Heineman,  jointly  and  sev- 
erally. Their  net  personal  worth,  exclusive  of  any  equity 
in  the  property  under  this  mortgage,  is  more  than  twice 
the  amount  of  the  entire  bond  issue. 

LEGALITY. 

The  titles  to  the  lands  covered  by  this  mortgage  have 
been  carefully  examined  and  certified  to  by  our  counsel, 
Mr.  Horace  S.  Oakley,  of  Chicago,  under  whose  legal  direc- 
tion the  trust  deed  and  bonds  have  been  drawn.  Mr.  Oak- 
ley's opinion  is  on  file  in  our  office,  and  we  shall  be  glad  to 
furnish  copies  of  same  on  request. 

FIRE   HAZARD. 

One  of  the  most  frequent  and  popular  arguments  used 
by  investors  against  the  purchase  of  timber  bonds  is  that 
of  fire  hazard,  which  is  not  unnatural,  as  it  is  popularly 
supposed  by  many  that  every  year  enormous  amounts  of 
valuable  timber  are  consumed  by  forest  fires.  This  belief, 
however,  is  not  borne  out  by  actual  facts.  A  careful  inves- 
tigation made  during  the  fall  of  1908  by  the  "American 
Lumberman"  proved  conclusively  that  standing  virgin  tim- 
ber is  seldom  damaged  to  any  extent  by  forest  fires,  that 
the  fires  so  currently  reported  in  the  public  press  during 
periods  of  drought  occur  almost  solely  in  the  undergrowth 
of  cut-over  lands  and  in  slashings.  In  substantiation  of 
the  foregoing  we  quote  the  following  extracts  from  the 
"American  Lumberman"  of  September  19,  1908,  as  follows: 

"It  may  be  stated  with  confidence  that  the  accounts  of 
forest  fires  given  in  the  daily  press  are  greatly  exaggerated 
from  the  timber  owner's  standpoint.  Every  one  who  has 
built  a  bonfire  with  the  leaves  he  has  raked  from  his 
lawn  knows  what  a  tremendous  smudge  a  little  fire  will 
produce,  but  when  several  states  are  covered  with  smoke, 
as  has  been  the  case  during  the  last  week,  the  conclusion 
naturally  is  that  so  much  smoke  must  be  the  result  of  con- 
siderable fire.  *  *  *  It  should  be  remembered  that  fire 
seldom,  if  ever,  destroys  the  timber  through  which  it 
parses.  *  *  *  Fires  thus  far  have  been  confined  almost 
entirely  to  cut-over  lands  and  brush  lands.  *  *  *  Fire 
seldom  invades  extensively  green  timber  of  the  sort  which 
enters  into  the   calculation  of  lumbermen.     Green  timber 


398  TIMBER  BONDS 

does  not  burn  readily,  and  under  ordinary  circumstances 
the  fire  will  die  out  of  itself  when  it  reaches  these  points 
of  resistance.  *  *  *  There  have  been  a  great  many 
fires  recently  in  Wisconsin  and  Michigan,  but  they  have 
been  entirely  in  underbrush,  grass  and  old  choppings." 

In  considering  the  fire  risk  on  the  B.  &  S.  Heinemann 
Timber  Co.'s  property,  it  should  be  borne  in  mind  in  the 
first  place  that  the  timber  is  almost  entirely  composed  of 
hardwood  and  therefore  not  susceptible  to  fire,  and  sec- 
ondly that  the  tracts  are  interspersed  with  substantial 
farm  holdings  which  would  render  it  impossible  for  a  dev- 
astating fire  to  damage  any  large  portion  of  the  timber. 

TIMBER   BONDS    AS   AN    INVESTMENT. 

Timber  is  one  of  the  most  valuable  natural  resources 
of  this  country.  Its  value  has  been  largely  underesti- 
mated, and  in  the  past  years  considerable  waste  has  taken 
place.  Those  who  some  years  ago  saw  the  increasing  value 
of  timber  have  amassed  immense  fortunes  by  purchasing 
timber  lands  and  holding  them  until  the  present  time. 
There  is  probably  no  commodity  which  has  shown  such  a 
substantial  and  steady  increase  in  value  as  has  virgin 
timber.  Our  experience,  covering  a  number  of  years  and 
based  upon  investigations  of  many  timber  loans,  convinces 
us  that  bonds  secured  upon  carefully  selected  virgin  tim- 
ber, the  property  of  well  established  and  operating  cor- 
porations, form  a  security  which  is  rarely  equalled  for 
safety. 

In  addition  to  the  actual  physical  security  behind  the 
present  issue  of  over  three  times  the  amount  of  the  bonds, 
Messrs.  Heinemann,  who  personally  guarantee  payment  of 
the  bonds  and  interest,  are  lumbermen  of  many  years'  ex- 
perience, and  own  and  operate  additional  lumber  com- 
panies, which  have  an  excellent  record  of  earnings  cover- 
ing a  number  of  years. 

We  call  special  attention  to  the  letters  of  Mr.  B.  Heine- 
mann   and    Mr.    S.    Heineman,    President    and    Secretary 
respectively,  of  the  B.  &  S.  Heinemann  Timber  Company, 
on  the  last  page  of  this  circular. 

Wausau,  Wis.,  July  24,  1909, 
Messrs.  McCoy  &  Company,   105  S.  LaSalle  Street,  Chi- 
cago, 111. 

Gentlemen: — In  accordance  with  your  request  that  I 
give  you  some  information  regarding  my  connection  with 
the  timber  and  lumber  industries,  I  would  state  that  I 
have  been  connected  with  the  timber  and  timber-land  busi- 
ness for  the  past  twenty  odd  years,  and  for  the  past  four- 


BOND  CIRCULARS  399 

teen  or  fifteen  years  have  been  actively  engaged  in  the 
manufacturing  of  lumber. 

I  am  president  of  the  B.  Heinemann  Lumber  Company, 
whose  mills  are  up-to-date,  are  equipped  with  modern 
machinery,  electric  lights  and  a  steam  heating  plant 
which  provides  heat  for  the  several  buildings.  The  plant 
is  located  at  Lumberton,  Wis.,  four  miles  west  of  Antigo, 
on  the  Chicago  &  Northwestern  Railroad,  and  this  company 
has  always  manufactured  its  products  in  the  most  econom- 
ical and  advantageous  manner.  In  addition  to  the  lumber 
industry,  they  are  also  engaged  in  the  manufacture  and 
wholesaling  of  excelsior. 

This  company  has  at  its  plant  a  hotel,  several  houses 
for  its  employes,  and  also  conducts  a  general  merchan- 
dise business. 

As  to  the  lands,  would  say  that  both  the  Chicago  & 
Northwestern  and  the  Chicago,  Milwaukee  &  St.  Paul  rail- 
roads run  through  the  entire  tract,  making  all  easily 
accessible  to  the  railroads  and  carrying  with  it  economical 
logging  operations.  These  lands  are  all  located  in  a  well 
settled  country,  thereby  creating  an  easy  market  for  the 
sale  of  the  lands  after  the  timber  is  removed. 

As  to  the  management  of  the  B.  Heinemann  Lumber 
Company,  will  say  that  same  is  managed  by  my  two 
sons,  W.  B.  Heinemann,  vice-president,  and  G.  B.  Heine- 
mann, secretary  and  treasurer,  they  giving  their  entire 
personal  attention  to  this  company  and  reside  at  the  mill. 
Mr.  G.  B.  Heinemann  is  also  vice-president  of  the  B.  &  S. 
Heinemann  Timber  Company. 

I  am  also  president  of  the  National  German-American 
Bank  of  Wausau,  Wis.;  president  of  the  B.  Heinemann 
Lumber  Company;  president  of  the  Cisco  Lake  Lumber 
Company,  both  of  Wausau,  Wis.;  vice-president  of  the 
Wisconsin  Box  Company,  Wausau,  Wis.;  vice-president  of 
the  Wausau  Land  Company.  Wausau,  Wis.;  secretary  and 
treasurer  of  the  Land  &  Loan  Company,  Merrill,  Wis.; 
director  of  the  Great  Northern  Life  Insurance  Company, 
Wausau,  Wis. ;  member  of  the  Executive  and  Finance  Com- 
mittee; vice-president  of  the  Langlade  Realty  Company, 
Wausau,  Wis.,  and  my  other  interests,  exclusive  of  any 
equity  which  I  have  in  the  B.  &  S.  Heinemann  Timber 
Company,  give  me  a  net  responsibility  considerably  in 
excess  of  the  bonded  indebtedness  of  the  B.  &  S.  Heine- 
mann Timber  Company. 

Yours  very  truly, 
(Signed)         B.  HEINEMANN, 
President  B.  &  S.  Heinemann  Timber  Co- 


400  TIMBER  BONDS 

Merrill,  Wis.,  July  24,  1909. 
Messrs.  McCoy  &  Company,  105  S.  LaSalle  St.,  Chicago, 
111. 
Gentlemen: — I  am  president  of  the  Heineman  Lumber 
Company,  Heineman,  Wis.,  which  business  was  begun  in 
November  of  1902,  as  a  co-partnership  consisting  of  my- 
self and  H.  H.  Heineman,  the  latter  having  a  working 
interest  in  the  business  and  managing  the  same  under 
my  direction.  The  business  was  run  as  a  co-partnership 
until  the  fall  of  1908,  when  it  was  incorporated  under 
its  present  title. 

The  properties  of  the  original  co-partnership  included 
some  5,000  acres  of  land  together  with  a  small  mill  and 
store,  hotel  and  a  few  dwellings,  and  since  that  time  the 
holdings  of  the  company  have  been  increased  many  fold 
in  its  timber  and  land  department  and  the  mill  plant  has 
been  remodeled  and  its  capacity  increased  nearly  three- 
fold. The  policy  of  the  co-partnership  has  been  so  far 
as  practicable  to  retain  its  timber  holdings,  and  to  that  end 
a  large  part  of  the  production  in  the  early  years  was  ob- 
tained by  purchases  of  logs  from  settlers  and  others. 

Since  the  beginning  of  its  business  our  company  has 
been  instrumental  in  opening  the  surrounding  country, 
and  the  laying  of  sQme  fifty  miles  of  track  through  its 
lands  has  served  the  double  purpose  of  making  its  timber 
holdings  accessible  and  of  settling  and  appreciating  the 
value  of  its  cut-over  lands. 

I  have  been  actively  identified  in  the  lumber  business 
and  in  the  land  business  in  various  companies  since  1886; 
and  Mr.  H.  H.  Heineman  has  been  actively  engaged  in  the 
lumber  and  land  business  for  the  past  ten  years,  including 
all  branches  of  lumber  business  from  the  logging  to  the 
sale  of  the  product.  I  reside  at  Merrill,  Wis.,  and  Mr. 
H.  H.  Heineman  at  Heineman,  Wis.  Mr.  H.  H.  Heine- 
man  is  treasurer  of  the  B.  &  S.  Heinemann  Timber  Com- 
pany. 

The  Village  of  Heineman  consists  of  sixty  dwellings 
for  employees,  store  buildings,  hotels  and  has  an  up-to- 
date  band  saw  mill  and  planing  mill.  The  entire  plant  is 
equipped  with  electric  lighting,  water  works  and  steam 
heating  supplied  from  the  saw  mill  plant;  and  the  plant 
and  yard  cover  approximately  200  acres  of  ground. 

In  addition  to  the  lumber  business,  conducted  at  Heine- 
man,  Wis.,  the  Heinemann  Lumber  Company  are  whole- 
saling the  product  of  several  other  northern  mills. 

Exclusive  of  any  equity  which  I  may  have  in  the  B. 
&  S.   Heinemann  Timber  Company   my   net  responsibility 


BOND  CIRCULARS 


401 


is  considerably  In  excess  of  the  amount  of  the  entire  issue 
of  bonds  of  the  B.  &  S.  Heinemann  Timber  Company. 

Yours  very  truly, 
(Signed)         SIG.  HEINEMAN, 
Secretary  B.  &  S.  Heinemann  Timber  Co. 
Telegraphic  orders  may  be  sent  at  our  expense. 
Bonds  will  be  shipped  to  any  responsible  bank,  express 
prepaid,  payable  in  Chicago  or  New  York  Exchange. 

All  statements  herein  are  official  or  based  on  informa- 
tion  which   we  regard   as   reliable,   and   while  we   do   not 
guarantee  them,   they  are  the   data  upon   which   we  have 
acted    in    the    purchase    of    these    securities.     Bonds    are 
offered  subject  to  prior  sale  and  advance  in  price. 
McCOY  &  COMPANY, 
105  So.  LaSalle  St., 
Chicago. 

EXHIBIT  NO.  10. 

Charles  M.  Smith  &  Company,  Bonds  for  Investment, 
First  National  Bank  Building,  Chicago. 

This  issue  of  bonds  is  a  legal  investment  for  Michigan 
savings  banks  and  trust  funds. 

We  own  and  offer  $450,000  closed  first  mortgage  six 
per  cent,  serial  gold  bonds  issued  by  The  Tennessee 
Timber  Co.,  Prendergast,  Tenn.,  guaranteed  by  The 
Prendergast  Company,  Marion,   Ohio. 

Dated  January  1,  1911.  Due  serially  as  shown  below. 
Interest  coupons  payable  January  and  July  1st,  at 
First  National  Bank  of  Detroit,  or  First  National 
Bank  of  Chicago.  Redeemable  on  any  interest  date 
after  sixty  days'  notice  at  102  and  interest.  De- 
nominations, $500  and  $1,000.  Principal  may  be 
registered  with  the  Trustee.  Bonds  mature  as  fol- 
lows: 


$20,000  July  1,   1911 

20,000  January  1,   1912 

20,000  July  1,    1912 

20,000  January  1,   1913 

20,000  July  1,   1913 

20,000  January  1,   1914 

20,000  July  1,   1914 

20,000  January  1,   1915 

20,000  July  1,    1915 


$25,000  July  1 

25,000  January  1 

25,000  July  1 

25,000  January  1 

25,000  July  1 

25,000  January  1 

25.000  July  1 

25,000  January  1 

25,000  July  1 

25,000  January  1 


1916 
1917 
1917 
1918 
1918 
1919 
1919 
1920 
1920 
1921 


20,000  January  1,   1916 

Price  par  and  interest,  yielding  six  per  cent 

SECURITY. 
The   mortgage   to   the   Security   Trust   Company,   of 


402  TIMBER  BONDS 

Detroit,  Michigan,  trustee,  is  a  first  lien  on  about  49,000 
acres  of  virgin  timber  lands,  owned  in  fee  simple,  con- 
taining 267,540,280  feet  of  standing  merchantable 
timber,  consisting  of  poplar,  white  and  yellow  pine,  white 
and  red  oak,  etc.,  lying  in  a  solid  body  in  Polk  County, 
Tennessee.  The  mortgage  also  covers  a  modern  double 
band  saw  mill  with  a  capacity  of  25,000,000  feet  per 
annum,  planing  mill,  dry  kilns,  etc.,  16  V^  miles  of  com- 
pletely equipped  standard  gauge  logging  railroad,  store 
building  and  employees'  houses,  located  at  Prendergast, 
Tennessee. 

A  conservative  appraisement  of  the  timber  mort- 
gaged, found  in  detail  on  the  following  page,  shows  it 
worth  $1,456,000, — over  three  times  the  amount  of  the 
bonds.  The  Prendergast  Company,  of  Marion,  Ohio,  un- 
conditionally guarantees  the  payment  of  bonds,  both 
principal  and  interest.  It  is  a  corporation  with  the 
highest  credit  and  has  been  profitably  engaged  in  the 
lumber  business  for  over  16  years.  Marwick,  Mitchell 
&  Co.,  chartered  accountants,  report  the  combined  as- 
sets of  the  companies  issuing  and  guaranteeing  the  bonds 
at  about  $2,500,000, — over  five  times  the  amount  of  the 
bonds,  and  the  net  profits  for  the  last  five  years  at  $440,- 
900.70. 

RAILWAY,  ESTIMATES  AND  APPRAISALS. 

The  company's  plant  at  Prendergast,  Tennessee,  is 
located  on  the  main  line  of  the  Louisville  &  Nashville 
Railway,  affording  excellent  shipping  facilities. 

Lemieux  Brothers  &  Company,  the  well  known  pub- 
lic estimators,  of  New  Orleans,  Louisiana,  estimate  the 
quantity  of  standing  merchantable  timber  at  267,540,280 
feet,  log  scale,  the  appraised  value  of  which  is  as  fol- 
lows: 

At  per 
Feet               1,000 
Poplar                         58,586,000        $12.00        $     703,032.00 
White  pine                35,459,160             6.00  212,754.96 

Yellow  pine               14,514,150             3.50  50,799.53 

White  oak                  12,101,755             6.00  72,610.53 

Red  oak                     13,855,480             4.00  55,421.92 

Basswood                   10,477,550             5.00  52,387.75 

Hemlock                     56,465,060             3.00  169,395.18 

Other   hardwoods    66,081,125 140,126.15 

$1,456,528.02 

Tanic  acid  wood 219,487   cords 

Pulp  wood 195,100   cords 


BOND  CIRCULARS  403 

FINANCIAL    STATEMENT    OF    COMPANIES    ISSUING 
AND   GUARANTEEING   BONDS. 

November  30,   1910,  before  issuance  of  bonds. 

ASSETS. 

Cash  in  banks  and  on  hand. .  $       85,922.17 

Accounts  receivable    125,649.25 

Lumber,     logs,     merchandise 

and     otlier     current     and 

working  assets 199,240.07 

Quick  assets $410,811.49 

Stumpage,    Polk    County, 

Tenn. $1,456,000.00 

Saw  mill  plant,  railroad  and 
logging  equipment,  etc., 
in  Polk  County,  Tenn...        519,390.57 

Real  estate  in  Marion,  Ohio, 
and  saw  mill  plant  and 
stumpage  in  W.  Virginia.         65,300.14 

Furniture    and    fixtures,    Ma- 
rion,   Ohio    1,500.00 

Fixed  assets   $2,042,190.71 


Total   assets    $2,453,002.20 

LIABILITIES. 

Accounts  and  bills  payable $439,778.26 

PURPOSE  OF  BOND  ISSUE. 

The  proceeds  of  the  bonds  will  be  used  to  pay  bal- 
ance on  timber  purchased  (included  in  bills  payable  ac- 
count), and  retire  floating  indebtedness,  leaving  the 
bonds  as  practically  the  only  debt. 

HISTORY  AND   MANAGEMENT. 

The  Tennessee  Timber  Co.  has  taken  over  from  The 
Prendergast  Company  its  Polk  County,  Tennessee,  timber 
lands  and  plant.  Its  capital  stock  is  owned  by  The 
Prendergast  Company,  and  the  officers  and  directors  of 
both  companies  are  practically  the  same.  The  Prender- 
gast Company  was  organized  in  1907  and  succeeded  to 
the  business  of  the  Prendergast  Lumber  &  Coal  Com- 
pany, of  Marion,  Ohio,  which  had  been  for  over  twelve 
years  prior  to  this  change  in  name,  profitably  engaged  in 
the  wholesale  lumber  and  coal  business  at  that  place. 
The  officers  are: 


404  TIMBER  BONDS 

J.  F.  Prendergast,  President. 

O.  S.  Rapp,  Vice-President. 

W.  S.  Probst,  Secretary  and  Treasurer. 

The  directors  are:  G.  W.  King,  J.  A.  Schroeter,  F. 
A.  Huber,  W.  E.  Scofield,  W.  G.  Harding,  C.  W.  Leffler, 
J.  F.  Prendergast,  O.  S.  Rapp  and  W.  S.  Probst.  They 
are  leading  business  men  of  Marion  and  officers  and 
principal  stockholders  of  such  corporations  as  The 
Marion  Steam  Shovel  Company,  Huber  Manufacturing 
Co.,  Marion  Water  Co.,  Marion  County  Telephone  Co., 
Marion  National  Bank,  Fahey  Banking  Co.  and  City  Na- 
tional Bank. 

SINKING  FUND. 

The  trust  deed  provides  that  before  any  timber  is  cut 
the  Company  must  pay  to  the  Trustee  as  a  sinking  fund 
for  the  redemption  of  bonds,  $3.00  per  thousand  feet, 
according  to  the  timber  estimates  on  file  with  the  Trus- 
tee. After  removal  of  timber  the  land  may  be  released 
by  the  Trustee  on  payment  of  $3.50  per  acre  into  the 
sinking  fund. 

The  sinking  fund  is  sufficient  to  retire  all  the  bonds 
before  sixty  per  cent  of  the  timber  mortgaged  has  been 
cut. 

FIRE   HAZARD. 

Timber  located  in  the  southern  states  has  never  been 
destroyed  by  fire.  Absence  of  undergrowth  and  height 
of  trees  render  any  serious  fire  damage  impossible. 

EXAMINATION. 

Before  purchasing  this  issue  we  made  a  thorough 
personal  investigation  of  all  of  the  conditions  on  which 
the  security  depends.  All  titles  to  the  property  have 
been  carefully  examined  and  approved  by  competent  at- 
torneys, under  whose  supervision  the  mortgage  was 
drawn  and  the  bonds  issued. 

Copies  of  trust  deed,  attorney's  opinion,  detailed 
timber  estimates  and  other  data  pertinent  to  the  issue 
may  be  seen  at  our  office. 

All  statements  herein  are  official  or  are  based  on  in- 
formation and  data  believed  by  us  to  be  trustworthy  and 
reliable,  and  while  not  guaranteed,  have  been  accepted 
and  acted  upon  by  us  in  the  purchase  and  appraisal  of 
the  bonds  and  the  property  securing  the  same. 

Bonds  are  offered  subject  to  prior  sale. 

Bonds  will  be  delivered  where  desired,  express  pre- 
paid, with  exchange. 

Telegrams  may  be  sent  at  our  expense. 


BOND  CIRCULARS  405 

Charles  M.  Smith  &  Company,  Bankers,  First  National 
Bank  Building,  Chicago.  Long  distance  telephone 
Randolph  1946. 

EXHIBIT  NO.  11. 

We   own   and   offer   at   par   and    interest    $500,000    first 
mortgage    6    per    cent,    serial    gold    bonds    Parsons 
Pulp  «6;  Lumber  Co.  of  Parsons,  W.  Va.,  and  Phila- 
delphia, Pa. 
Principal  and  interest  guaranteed  by  William  Whitmer 

&  Sons,  Inc.,  of  Philadelphia,  Pa. 
Girard    Trust    Company    and    Charles    J.    Rhoads,    Esq., 

Philadelphia,  Pa.,  trustees. 
Dated  November  1,  1909.  Coupon  bonds,  $1,000  and 
$500  each.  Principal  may  be  registered.  Bonds 
mature  serially  each  six  months.  Principal  and 
semi-annual  interest  (May  and  November)  payable 
at  Girard  Trust  Company,  Philadelphia;  or  Central 
Trust  Company,  Chicago;  or  Bank  of  Scotland,  Lon- 
don. 
Bonds  mature  serially  each  six  months  from  Nov.  1, 
1911,  to  Nov.  1,  1924. 

FINANCIAL  STATEMENT. 
Capital  stock  and  surplus  Parsons  Pulp  & 

Lumber   Co $3,610,039.45 

Estimated    value    of    property    covered    by 

this  bond   issue 9,324,034.00 

Bonds  authorized $3,800,000 

Escrow  bonds  (can 
be  issued  only 
under  strict  pro- 
visions of  Trust 
Deed  for  pur- 
chase of  addi- 
t  i  o  n  a  1  timber 
lands  and  im- 
provements) ..$500,000 
Bonds  matured, 
paid  and  can- 
celed   1910 195,000         695,000 

$3,105,000 
Reserved     in    treasury,     Wm. 

Whitmer  &  Sons,  Inc 300,000 

Bonds   outstanding,    including 

amount  now  offered $2,805,000.00 


406  TIMBER  BONDS 

We  have  had  the  books  of  the  Parsons  Pulp  &  Lum- 
ber Company  and  William  Whitmer  &  Sons,  Inc.,  ex- 
amined by  The  Audit  Company  of  New  York.  Copies  of 
their  report  will  be  sent  on  request. 

SEVEN  YEARS'  RECORD  OF  EARNINGS. 

The  net  income  of  the  Parsons  Pulp  &  Lumber  Com- 
pany for  the  year  1910  is  $616,299.68,  or  over  three  and 
one-quarter  times  the  maximum  interest  charge  on  this 
entire  issue.  The  annual  net  earnings  for  the  past 
seven  years  have  averaged  over  $400,000,  or  nearly  four 
times  the  average  interest  charge  of  the  entire  issue. 
During  the  past  year  the  indebtedness  per  thousand  feet 
of  timber  has  been  reduced  from  $1.73  to  $1.69,  and 
the  security  correspondingly  increased. 

MORTGAGE  SECURITY 

The  bonds  are  secured  by  first  mortgage  on  nearly 
two  billion  feet  of  merchantable  spruce,  poplar  and  hard- 
wood timber,  55  miles  of  railroad  and  modern  equip- 
ment, three  large  saw  mills  and  50-ton  pulp  mill,  and 
100,400  acres  of  land.  The  market  value  of  the  above 
properties  covered  by  the  mortgage  is  conservatively 
estimated  at  $9,324,034,  or  over  three  times  the  amount 
of  this  bond  issue  of   $3,105,000. 

VALUE  OF  GUARANTEE. 

These  bonds  have  the  unconditional  guarantee  of 
William  Whitmer  &  Sons,  Inc.,  of  Philadelphia,  which 
company  has  been  in  successful  operation  in  the  lumber 
business  for  about  forty  years,  and  is  one  of  the  largest 
and  best  known  lumber  companies  in  the  East.  This 
bond  issue  represents  the  entire  indebtedness  of  the 
Parsons  Pulp  &  Lumber  Company  and  William  Whitmer 
&  Sons,  Inc.,  excepting  ordinary  current  accounts. 

List  of  maturities  offered  given  on  last  page. 

MORTGAGE. 

This  bond  issue  is  secured  by  a  first  mortgage  to  the 
Girard  Trust  Company  and  Charles  J.  Rhoads,  Trustees, 
of  Philadelphia,  on  100,400  acres,  owned  in  fee  simple, 
and  63,000  acres  timber  deeds,  a  total  of  163,400  acres 
of  spruce,  yellow  poplar,  hemlock,  oak,  chestnut  and 
other  hardwood  timber,  located  in  Pendleton,  Poca- 
hontas, Randolph,  Tucker  and  Grant  counties.  West 
Virginia;    Highland,    Washington,    Russell,    Smyth    and 


BOND   CIRCULARS  407 

Tazewell  counties,  Virginia,  and  Swain  County,  North 
Carolina. 

The  bonds  are  also  secured  by  a  first  mortgage  on 
three  modern  saw  mill  plants,  pulp  mills,  5  5  miles  of 
railroad  and  equipment  and  logging  equipment,  located 
at  Dobbins,  Lanesville  and  Horton,  West  Virginia. 

The  Company's  large  pulp  mill  at  Parsons,  W.  Va., 
is  located  near  its  three  saw  mills  in  that  state,  and  is 
profitably  manufacturing  into  sulphite  pulp  the  refuse 
and  limbs  of  trees  which  are  wasted  in  the  usual  saw 
mill  operation. 

VALUE  OF  PROPERTY  COVERED  BY  MORTGAGE. 

A  conservative  appraisal  of  the 
value  of  the  timber  covered  by 
this  bond  issue  is  $3.50  per 
thousand  feet,  log,  scale,  or ...  $6,690,222 

900,000  cords  of  spruce  and  hem- 
lock pulp  wood  tan  bark  and 
acid  wood  conservatively  es- 
timated at 1,205,500 

Total $7,895,722 

Value  of  three  saw  mill  plants,  pulp  and  paper 
mill,  railroads  and  logging  equipment,  also 
covered  by  this  bond  issue 1,428,312 

A  total  value  of  all  property $9,324,034 

or  over  three  times  the  amount  of  this  bond  issue  of  $3,- 
105,000.  This  appraisal  does  not  include  the  value  of 
the  100,400  acres  of  land,  owned  in  fee  simple,  for 
mineral,  grazing  and  agricultural  purposes. 

TIMBER  ESTIMATES. 

The  timber  lands  located  in  West  Virginia  have  been 
estimated  by  Lemieux  Bros.  &  Company,  public  es- 
timators, of  New  Orleans,  La. 

The  timber  lands  in  Virginia  were  carefully  estimated 
by  Mr.  R.  P.  Moore,  and  the  timber  lands  in  North 
Carolina  by  Mr.  John  C.  Arbogast,  who  are  expert  es- 
timators of  timber  in  those  sections.  These  estimates 
have  been  verified  by  the  well-known  and  competent 
timber  estimator,  Mr.  W.  E.  Straight,  of  Chicago. 

According  to  the  above  estimates,  this  bond  issue 
covers  1,911,492,000  feet,  log  scale,  of  merchantable 
standing  timber,  as  follows: 


408  TIMBER  BONDS 

Spruce    1,350,000,000 

Hemlock    214,050,000 

Oak    94,279,000 

Chestnut    113,233,000 

Yellow     poplar,     cherry,     ash, 

birch  and  other  hardwoods    139,930,000 

Total    1,911,492,000  ft.  log  scale 

PURPOSE  OF  BOND  ISSUE. 

Of  the  authorized  bond  issue  of  $3,800,000,  $195,000 
bonds  have  been  retired  and  $500,000  are  held  in  escrow 
by  the  Trustee  and  can  be  issued  only  in  acquiring  addi- 
tional timber  and  further  improving  the  property  of  the 
Company,  under  strict  provision  of  the  trust  deed.  The 
$3,300,000  bonds  originally  outstanding  were  issued  to 
refund  the  Company's  then  outstanding  issue  of  $1,- 
550,000  bonds,  to  take  up  the  outstanding  indebtedness 
against  the  subsidiary  companies  taken  over  from  Wil- 
liam Whitmer  &  Sons,  Inc.,  and  to  reimburse  William 
Whitmer  &  Sons,  Inc.,  for  advances  made  on  account  of 
purchase  price  of  properties,  and  leaves  in  the  treasury 
of  William  Whitmer  &  Sons,  Inc.,  $300,000  of  bonds. 

In  addition  to  the  $300,000  treasury  bonds  above 
referred  to,  the  report  of  The  Audit  Company  of  New 
York  shows  that  the  Parsons  Pulp  &  Lumber  Company 
and  William  Whitmer  «&;  Sons,  Inc.,  have  on  hand  quick 
assets  amounting  to  about  $1,000,000. 

STATEMENT  OF  EARNINGS. 

The  earnings  of  the   Parsons  Pulp  &  Lumber  Com- 
pany for  the  year  ending  December  31,   1910,  were  as 
follows: 
Gross  revenue  from  sales,   (after  deducting 

allowances,  returns,  freight,  etc.) $1,774,579.20 

Operating  expense    (including  repairs  and 

supplies,  insurance,  taxes,  etc.) 1,191,156.19 

Net  earnings  from  operations $     583,423.01 

Other  income 32,876.67 

Total  net  income $     616,299.68 

Bond    interest    and     other 

charges    $222,061.77 

Sinking   fund    paid   to   Trustee 

for  retirement  of  bonds.  .  .    177,425.67       399,487.44 

Surplus    $     216,812.24 


BOND  CIRCULARS  409 

GUARANTY. 

The  payment  of  the  bonds  and  interest  thereon  is 
guaranteed  unconditionally  by  a  signed  endorsement  on 
each  bond  by  William  Whitmer  &  Sons,  Inc.,  of  Phila- 
delphia, Pa.  William  Whitmer  &  Sons,  Inc.,  owns  the 
entire  capital  stock  of  the  Parsons  Pulp  &  Lumber  Com- 
pany, and  the  officers  of  the  two  companies  are  prac- 
tically identical. 

The  Parsons  Pulp  &  Lumber  Company  was  organized 
for  the  purpose  of  consolidating  into  one  company  the  dif- 
ferent subsidiary  companies  of  William  Whitmer  &  Sons, 
Inc.,  as  follows:  The  Rumbarger  Lumber  Company,  of 
Dobbins,  W.  Va. ;  Dry  Forks  Lumber  Company,  of  Lanes- 
ville,  W.  Va.;  the  Condon-Lane  Boom  &  Lumber  Com- 
pany, of  Horton,  W.  Va.,  and  the  Parsons  Pulp  &  Paper 
Company,  of  Parsons,  W.  Va.  These  companies  have 
been  in  successful  operation  for  many  years. 

William  Whitmer  &  Sons,  Inc.,  the  guarantors  of 
these  bonds,  is  one  of  the  largest  and  oldest  lumber 
manufacturers  and  dealers  in  the  East.  This  business 
was  established  in  Sunbury,  Pa.,  about  forty  years  ago 
and  was  moved  to  Philadelphia  in  1890.  They  operated 
saw  mills  in  Pennsylvania  and  for  about  twenty  years 
have  carried  on  large  saw  mill  operations  in  West  Vir- 
ginia. In  addition  to  the  large  holdings  of  timber  lands 
owned  by  them  by  virtue  of  the  ownership  of  the  Par- 
sons Pulp  &  Lumber  Company,  which  are  regarded 
among  the  most  valuable  in  the  states  named,  William 
Whitmer  &  Sons,  Inc.,  own  a  large  tract  of  timber  land 
In  Florida,  valuable  equities  in  timber  lands  in  Louis- 
iana, and  own  valuable  water  power  rights  in  North 
Carolina.  They  also  operate  a  large  lumber  yard  in 
Philadelphia,  and  selling  agencies  in  New  York  City, 
Pittsburg,  Pa.,  Newark,  N.  J.,  and  Philadelphia. 

SINKING  FUND. 

Under  the  strict  provisions  of  the  trust  deed,  the 
Company  is  required  to  deposit  with  the  Trustee,  $3.00 
per  thousand  feet,  log  scale,  for  all  timber  cut,  and  10 
cents  per  cord  of  wood  cut,  as  a  sinking  fund  to  retire 
the  principal  of  this  bond  issue.  This  sinking  fund  will 
operate  to  retire  all  of  the  bonds  before  cutting  off  60 
per  cent,  of  the  timber  covered  by  the  mortgage.  Should 
the  deposit  exceed  the  amount  of  bonds  maturing  in  any 
year,  the  Trustee  is  required  to  purchase  or  call  for  re- 
demption, at  a  premium  of  1^4  per  cent.,  the  unmatured 
bonds  to  an  amount  sufficient  to  exhaust  the  surplus. 


410  TIMBER  BONDS 

TITLE  AND  LEGALITY. 
The  titles  to  the  lands  covered  by  this  mortgage  have 
been  carefully  examined  and  certified  by  our  counsel, 
Adams  &  Candee,  of  Chicago,  and  Milton  C.  Work,  of 
Philadelphia,  Pa.,  under  whose  legal  direction  the  mort- 
gage and  bonds  were  prepared. 

DATES   OF  PAYMENT. 
The  bonds  are  $500  and  $1,000  each.  Mature  serially 
each  six  months  from  November  1,  1911,  to  November  1, 
1924.     Unsold  bonds  offered  mature  as  follows: 

MATURITIES. 
$20,000   Nov.    1,   1917  $35,000   Nov.    1,   1921 

30,000   May    1,    1918  45,500   May    1,   1922 

30,000   Nov.    1,    1918  40,000   Nov.    1,    1922 

40,000   May    1,    1919  45,500   May    1,   1923 

35,000   Nov.    1,    1919  33,000   Nov.    1,   1923 

35,500   May    1,    1920  45,000   May    1,    1924 

20,500   Nov,    1,   1920  10,000   Nov.    1,    1924 

■     35,000   May    1,    1921 
Price  of  bonds,  all  maturities,  par  and  accrued  interest, 
yielding  six  per  cent. 
The  above  statements  are  based  on  information  and 
data  believed  by  us  to  be  trustworthy  and  reliable,  and, 
while   not   guaranteed    by   us,    have   been   accepted   and 
acted  upon  by  us  in  the  purchase  and  appraisal  of  the 
bonds  and  the  property  securing  the  same. 
A.  B.  Leach  &  Co.,  140  Dearborn  Street,  Chicago;    149 
Broadway,  New  York;   28  State  Street,  Boston;   4th 
and  Chestnut,  Philadelphia. 

EXHIBIT  NO.   12. 

McCoy  &  Company,  Investment  Bonds,  105  South  La- 
Salle  Street,  Chicago,  111.  Cable  address,  "Horn- 
coy,"  Chicago.     Circular  No.  359. 

$150,000  (part  of  $600,000  issue)  Butterfleld  Lumber 
Company,  Norfield,  Miss.,  first  mortgage  six  per 
cent  serial  gold  bonds. 

Dated  July  1st,  1909.  Maturing  in  series  as  below. 
Callable  on  July  1st,  1910,  or  on  any  interest  date 
thereafter,  at  102.50  and  interest.  Coupon  bonds 
with  privilege  of  registration  as  to  principal.  De- 
nominations, $500.00  and  $1,000.00.  Principal  and 
semi-annual  interest  (January  and  July  1st)  pay- 
able at  the  office  of  the  Chicago  Title  and  Trust 
Company,  Chicago. 

Chicago  Title  &  Trust  Company  and  Wm.  C.  Niblack, 
Esq.,  Chicago,  Trustees. 


BOND  CIRCULARS  411 

FINANCIAL    STATEMENT. 

Capital     $     225,000.00 

Net  surplus 2,287,261.57 

Bonds  authorized    600,000 

Bonds  held  in  reserve 300,000 

Bonds  outstanding 300,000.00 

MATURITIES. 

$15,000  due  July  1st,  1910  $15,000  due  July  1st,  1915 

15,000  due  July  1st,  1911  15,000  due  July  1st,  1916 

15,000  due  July  1st,  1912  15,000  due  July  1st,  1917 

15,000  due  July  1st,  1913  15,000  due  July  1st,  1918 

15,000  due  July  1st,  1914  15,000  due  July  1st,  1919 

Price,  any  maturity,  par  and  interest. 

MORTGAGE. 

These  bonds  are  part  of  an  authorized  issue  of  $600,- 
000,  secured  by  a  closed  first  mortgage  to  the  Chicago 
Title  &  Trust  Company,  and  Mr.  Wm.  C.  Niblack,  Trus- 
tees, upon,  approximately,  39,000  acres  of  compact,  well 
located,  virgin,  long  leaf,  yellow  pine  timber,  situated  in 
Lawrence,  Marion  and  Pike  Counties,  Mississippi,  and 
upon  the  saw  mill,  planing  mill,  dry  kilns,  etc.,  of  the 
Company,  located  at  Norfield,  Mississippi.  The  deed  of 
trust  provides  that  none  of  the  timber  while  under  this 
mortgage  can  be  turpentined. 

EARNINGS. 
The  net  earnings  of  the  Butterfield  Lumber  Com- 
pany for  the  past  three  years,  as  officially  reported  by 
the  treasurer,  have  averaged  $140,226.88  per  annum,  or, 
over  three  and  one-half  times  the  average  annual  re- 
quirements for  interest  and  principal  on  the  outstand- 
ing bonds.  In  view  of  the  general  depression  existing 
for  the  past  two  or  three  years  in  all  branches  of  busi- 
ness, we  regard  these  figures  as  exceptionally  meri- 
torious, and  a  strong  endorsement  of  the  excellent  and 
capable  management  of  the  Company. 

AMOUNT  AND  VALUE  OF  TIMBER. 
A  careful  estimate  of  the  timber  made  in  detail  by 
Messrs.  J.  D.  Lacey  &  Co.  and  Lemieux  Brothers  &  Co. 
shows  that  the  lands  under  this  mortgage  contain  over 
405,000,000  feet,  log  scale,  of  standing,  merchantable, 
long-leaf  yellow  pine  timber,  10  inches  and  over  in 
diameter.  We  appraise  the  value  of  this  timber  alone 
at  $1,620,000.00. 


412  TIMBER  BONDS 

The  balance  sheet  of  the  Butterfield  Lumber  Co. 
furnished  us  as  of  July  1,  1909,  shows  the  following 
assets  and  liabilities  as  duly  certified  to  by  its  treasurer: 

RESOURCES. 

465,000,000  ft.  merchantable  long-leaf  yel- 
low pine  at  $4  per  M $1,860,000.00 

3  4     miles    standard     gauge    railroad     and 

equipment   282,148.18 

Saw    mill,    dry    kilns,    machine    shop,    ma- 
chinery and  houses 234,443.01 

12,000  acres  cut-over  land  at  $5  per  acre.  60,000.00 

201.60  acres  in  town  of  Norfield 4,032.00 

Cash,  accounts  and  bills  receivable 105,852.30 

Logs  in  pond,  manufactured  lumber,  lath, 

shingles,   etc 87,047.05 

Interest,  unexpired  insurance,  etc 2,328.64 

$2,635,851.18 

LIABILITIES. 

Bills   payable    $       52,000.00 

Open  accounts  not  yet  due 43,709.86 

Uncollected  freights,  and  accrued  pay-roll.  27,879.75 

Capital    and    surplus 2,512,261.57 

$2,635,851.18 
From  the  above,  it  will  be  seen  that  these  bonds  are 
issued  at  the  rate  of  less  than  $1.50  per  M.  feet  of  long- 
leaf  yellow  pine,  conservatively  valued  at  $4.00  per  M. 
feet,  and  that  the  net  capital  and  surplus  of  the  Com- 
pany are  over  four  times  the  amount  of  the  entire 
authorized  issue  of  bonds. 

SINKING  FUND. 
The  mortgage  under  careful  restrictions,  requires  a 
deposit  in  advance  with  the  Trustees  of  three  dollars 
($3.00)  for  each  one  thousand  feet  of  timber  to  be  cut, 
such  deposit  to  be  made  on  the  basis  of  the  amount  of 
timber  found  on  each  forty  (40)  acre  tract,  as  deter- 
mined by  the  cruise,  a  copy  of  which  is  filed  with  the 
Trustees. 

FIRE   HAZARD. 

Timber  lands  located  in  Mississippi  and  other  South- 
ern States  have  never  been  destroyed  by  fire,  owing  to 
the  entire  absence  of  undergrowth  and  the  unusual 
height  of  the  trees. 


BOND  CIRCULARS  413 

HISTORY  OF  THE  COMPANY. 

In  1884  Messrs.  Norwood  and  Butterfield  formed  a 
partnership  for  the  conduct  of  a  lumber  business,  in 
18  8  7  the  firm  purchased  a  southern  mill,  incorporated 
under  the  style  of  Norwood  &  Butterfield  and  adopting 
their  present  title  of  Butterfield  Lumber  Company  in 
July  1900.  The  operations  of  the  Company  have  been 
uniformly  successful  throughout  this  long  period,  as  is 
shown  by  the  fact  that  the  Company  now  owns  over 
465,000,000  feet  (approximately  600,000,000  feet  in 
addition  to  the  timber  under  this  mortgage)  of  excel- 
lent standing  merchantable  timber,  a  double  band  saw 
mill  with  a  capacity  of  32,000,000  feet  per  annum,  plan- 
ing mill,  dry  kilns,  houses  for  employes,  thirty-four  miles 
of  standard  gauge  railroad  and  complete  logging  equip- 
ment. 

PURPOSE  OF  BOND  ISSUE. 

The  proceeds  of  this  issue  of  bonds  will  be  devoted 
to  the  funding  of  the  floating  indebtedness  of  the  cor- 
poration, amounting  to  only  $52,000,  as  of  July  1,  1909; 
to  providing  additional  working  capital;  to  the  making 
of  such  improvements  and  extensions  to  their  plant  as 
may  be  necessary  from  time  to  time,  and  to  the  pur- 
chase of  additional  timber  holdings. 

TITLE  AND  LEGALITY. 

All  matters  pertaining  to  the  legality  of  this  issue, 
titles  to  the  property,  etc.,  have  been  favorably  passed 
upon  by  Horace  S.  Oakley,  Esq.,  Chicago,  Illinois,  and 
by  Thomas  Brady,  Jr.,  Esq.,  of  Brookhaven,  Mississippi. 
Copies  of  the  deed  of  trust,  counsel's  opinion  and  copy 
of  our  cruiser's  detailed  report,  together  with  other 
pertinent  data,  are  on  file  and  may  be  seen  at  our  office 
at  any  time. 

In  the  past  we  have  handled  and  examined  a  large 
number  of  timber  properties,  and  we  beileve  that  we 
have  seldom  had  the  opportunity  of  recommending  to 
our  clients  a  more  amply  secured  southern  timber  loan 
than  in  this  present  instance. 

We  recommend  these  bonds  for  Investment  for  the 
following  reasons:  — 

(1)  The  excellent  quality  of  security. 

(2)  The  very  conservative  basis  of  the  loan. 

(3)  The  excellent  reputation  and  the  successful  his- 
tory of  the  makers. 


414  TIMBER  BONDS 

(4)  The  unusually  large  net  surplus  of  the  Com- 
pany. 

(5)  The  serial  feature  which  rapidly  reduces  the 
bonded  indebtedness,  and  enhances  the  margin  of  safety. 

(6)  The  strong  sinking  fund  provisions. 

(7)  The  excellent  reputation  which  timber  bonds 
of  this  character  enjoy. 

The  above  bonds  are  offered  subject  to  prior  sale  and 
advance  in  price. 

Telegraphic  orders  may  be  sent  at  our  expense.  Bonds 
will  be  shipped  express  prepaid,  to  any  responsible  bank, 
payable  in  Chicago  or  New  York  funds  with  exchange. 

All  statements  herein  are  official  or  based  on  in- 
formation which  we  regard  as  reliable,  and  while  we  do 
not  guarantee  them,  they  are  the  data  upon  which  we 
have  acted  in  the  purchase  of  these  securities. 

McCOY  &  COMPANY, 

105  South  LaSalle  St., 

CHICAGO. 


EXHIBIT  NO.  13. 

Clark  L.  Poole  &  Co.,  Bankers,  Commercial  National 
Bank  Bldg.,  Chicago. 

SIX  PER  CENT.  TIMBER  LAND  BONDS. 

Secured  by  a  first  and  closed  mortgage  on  about  12,000 
acres  of  redwood  timber  lands,  owned  in  fee  simple, 
located  in  Mendocino  County,  California,  adjoining 
the  Pacific  Ocean,  containing  over  five  hundred  mil- 
lion (500,000,000)  feet,  log  scale,  of  standing 
merchantable  timber. 

We  appraise  the  market  value  of  the  property  covered 
by  this  bond  issue  at  $1,350,000,  or  two  and  one- 
half  times  the  amount  of  this  bond  issue. 

Redwood  timber  has  never  been  destroyed  by  fire.  There 
is  no  fire  hazard  in  redwood  timber. 

We  own  and  offer,  subject  to  prior  sale:  $500,000  first 
mortgage  six  per  cent,  serial  gold  bonds  of  the  Men- 
docino Redwood  Company,  capital  $750,000,  of  San 
Francisco,  California. 

R.  T.  Buzard,  president,  San  Francisco,  California. 

E,  S.  Collins,  vice-president,  Ostrander,  Washington. 

G.  E.  Tuman,  secretary  and  treasurer,  Fruitvale,  Cali- 
fornia. 

Dated  July  1,  1910.  Coupon  bonds  $500  and  $1,000 
each.     Principal  may  be  registered.     Bonds  mature: 


BOND  CIRCULARS 


415 


$50,000   July  1,   1915  $25,000   July  1,   1920 

25,000   January    1,    1916  25,000   January    1,    1921 

25,000   July  1,    1916  25,000   July  1,    1921 

25,000   January    1,    1917  25,000   January    1,    1922 

25,000   July  1,   1917  25,000   July  1,   1922 

25,000   January    1,    1918  25,000   January    1,    1923 

25,000   July  1,   1918  25,000   July  1,    1923 

25,000  January    1,   1919  25,000  January    1,   1924 

25,000   July  1,   1919  25,000   July  1,    1924 

25,000  January    1,   1920 
Principal    and    semi-annual    interest    (January    1st    and 
July  1st)  payable  at  Central  Trust  Company 
of  Illinois,  Trustee,  Chicago. 
The  owners  of  the  Mendocino  Redwood  Company  are 
successful   lumbermen   and  timbermen  of   Pennsylvania, 
California  and  Washington  and  part  owners  of  several 
of  the   largest   tracts   of   redwood,    pine   and   fir   timber 
lands  on  the  Pacific  Coast  and  elsewhere. 

TIMBER. 

This  mortgage  to  the  Central  Trust  Company  of  Illi- 
nois, as  Trustee,  is  a  first  lien  on  12,000  acres  of  well 
located  virgin  redwood  timber  lands  in  one  solid  body, 
owned  in  fee  simple,  located  in  Mendocino  County,  Cali- 
fornia. These  lands  are  heavily  timbered  with  a  good 
quality  of  redwood  (85%)  and  fir  (15%)  and  lie  along 
either  side  of  the  Usal  River  and  branches.  This  tract 
controls  a  large  amount  of  additional  timber,  the  natural 
outlet  for  which  is  through  this  tract. 

The  holdings  of  the  Mendocino  Redwood  Company 
are  surrounded  on  the  north  and  east  by  the  properties 
of  the  Sage  Land  &  Improvement  Company,  of  Albany, 
New  York,  and  on  the  south  and  east  by  the  Cottoneva 
Lumber  Company,  formerly  the  New  York  &  Pennsyl- 
vania Redwood  Company,  two  of  the  strongest  redwood 
timber  companies  on  the  coast.  Both  of  these  proper- 
ties, and  other  holdings  in  that  vicinity,  are  held  at 
$3.00  per  thousand  feet  and  higher. 

The  owners  of  the  Mendocino  Redwood  Company, 
who  are  largely  interested  in  the  Cottoneva  Lumber 
Company  and  other  lumber  companies  owning  timber 
lands  in  this  section,  organized  the  Mendocino  Lumber 
Company  for  the  purpose  of  purchasing  and  holding  the 
tract  of  timber  lands  securing  this  bond  issue,  and  it  is 
their  present  intention  not  to  manufacture  any  of  this 
timber  for  at  least  five  years.  Interest  and  maturing 
bonds  will  be  paid  out  of  the  profits  from  their  other 
operations. 


416  TIMBER  BONDS 

TIMBER  ESTIMATES. 

The  estimates  on  this  tract,  made  in  detail  by  Mr.  A. 
W.  Elam,  were  checked  and  the  properties  purchased 
under  the  supervision  of  Mr.  George  B.  Tuman,  timber 
expert.  During  the  past  fifteen  years  Mr.  Tuman  has 
estimated  and  superintended  the  purchase  of  coast  timber 
aggregating  thirteen  billion  five  hundred  million  feet,  for 
the  following  large  lumber  companies: 

Big  Lagoon  Lumber  Company,  owning  four  billion  feet 
of  redwood  timber. 

Cottoneva  Lumber  Company  (formerly  New  York  & 
Pennsylvania  Redwood  Company),  owning  about  two  bil- 
lion feet  of  redwood  timber. 

Curtis,  Collins  &  Holbrook  Company,  owning  over  two 
and  one-half  billion  feet  of  sugar  and  white  pine  timber  in 
California. 

Rogue  River  Timber  Company,  owning  over  three  bil- 
lion feet  of  sugar  and  white  pine  and  fir  timber  in  Oregon. 

And  about  twelve  smaller  companies  owning  at  least 
one-half  billion  feet  each. 

We  have  also  had  these  estimates  checked  by  our  own 
cruiser,  Mr.  W.  E.  Straight,  who  reports  the  estimates 
conservative,  the  timber  of  excellent  quality,  green  and 
thrifty  and  the  whole  situation  favorable  from  a  logging 
and  operating  standpoint. 

The  detail  estimates  are  on  file  with  the  Trustee,  the 
Central  Trust  Company  of  Illinois,  and  in  our  office,  and 
are  summarized  as  follows: 

Redwood     412,015,000  feet 

Fir    89,335,000  feet 

Total    501,350,000  feet 

after  allowing  20  per  cent,  for  breakage,  but  owing  to  the 
lay  of  the  land  the  breakage  will  not  amount  to  more  than 
10  per  cent.     Average  per  acre,  about  42,000  feet. 

The  above  estimates  are  based  on  log  scale  of  uncut 
merchantable  timber  24  inches  and  up.  Our  Mr.  Straight 
reports  that  the  average  height  of  the  trees  is  about  200 
feet,  but  in  estimating  the  timber  only  seven  16-foot  logs 
were  counted.  The  average  diameter  of  the  timber  is  41/2 
feet  inside  of  bark  five  feet  above  the  ground  and  the  logs 
will  average  about  450  board  feet  to  the  16-foot  log. 

VALUE  OF  PROPERTIES. 

We  appraise  the  market  value  of  this  timber  at  $2.50 
per  thousand  feet,  or  $1,253,375.00,  or  over  two  and  one- 
half  times  the   entire  amount  of  this   bond   issue.     Other 


BOND   CIRCULARS  417 

holdings    of    redwood    timber    surrounding    this    tract    are 
held  at  $3.00  per  thousand  feet  and  higher. 

The  commercial  supply  of  redwood  is  practically  lim- 
ited to  three  counties  in  California,  forming  a  small  strip 
of  territory  close  to  the  coast  north  of  San  Francisco. 
The  entire  stand  is  estimated  at  less  than  one  hundred 
billion  feet.  It  is  the  oldest  type  of  forest  growth  found 
in  the  United  States.  Redwood  timber  is  practically  all 
in  the  hands  of  a  few  strong  holding  companies  and  owner- 
ship seldom  changes  hands. 

OFFICERS. 

R.  T.  Buzard,  President,  was  for  many  years  a  suc- 
cessful lumberman  in  Pennsylvania,  where  he  was  a  large 
stockholder  and  manager  of  the  Salmon  Creek  Lumber 
Company  and  the  Pennsylvania  Lumber  Company,  known 
as  the  Collins  properties,  in  the  vicinity  of  Tionesta  and 
Sheffield.  Pennsylvania.  Mr.  Buzard  is  the  principal  stock- 
holder in  a  southern  lumber  company  operating  in  yellow 
pine  timber  at  Lamison,  Alabama.  He  is  also  a  large 
stockholder  in  the  Lagoon  Lumber  Company,  which  owns 
about  four  billion  feet  of  redwood,  and  a  large  stockholder 
and  general  manager  of  the  Cottoneva  Lumber  Company 
(formerly  known  as  New  York  &  Pennsylvania  Redwood 
Company),  which  company  owns  about  two  billion  feet  of 
redwood  timber  and  operates  a  saw  mill. 

E.  S.  Collins,  Vice-President,  was  formerly  a  Pennsyl- 
vania lumberman  and  associated  with  his  father.  Mr.  T.  D. 
Collins,  of  Nebraska,  Pa.,  one  of  the  wealthiest  and  most 
successful  lumbermen  in  Pennsylvania,  who  has  for  many 
years  and  is  at  the  present  time  operating  six  saw  mills 
in  Western  Pennsylvania.  Mr.  Collins  is  president  and 
general  manager  of  the  Ostrander  Railway  &  Timber  Com- 
pany, of  Ostrander,  Wash.;  president  and  general  man- 
ager of  the  Castle  Rock  Timber  Company,  of  Castle  Rock, 
Wash.;  vice-president  of  and  large  stockholder  in  the 
Curtis,  Collins  &  Holbrook  Company,  of  California,  owning 
two  and  one-half  billion  feet  of  sugar  and  white  pine 
timber;  vice-president  and  stockholder  in  the  Pennsylvania 
Lumber  Company  and  principal  owner  of  a  large  retail 
lumber  concern  at  Oakland,  Cal.  Mr.  Collins  is  also  a 
large  owner  of  timber  lands  in  Oregon  and  is  one  of  the 
prominent  lumbermen  of  the  Northwest. 

G.  E.  Tuman,  Secretary  and  Treasurer,  is  director  and 
stockholder  in  the  Curtis,  Collins  &  Holbrook  Company; 
stockholder  in  the  Wheeler  Timber  Company,  Nelson  Lum- 
ber Company,  Cottoneva  Lumber  Company  and  the  Big 
Lagoon  Lumber  Company,  and  is  recognized  as  one  of  the 


418  TIMBER  BONDS 

most  experienced  timber  and   lumber  men   on   the  Pacific 
Coast. 

The  owners  of  the  Mendocino  Redwood  Company  are 
successful  lumbermen  of  Pennsylvania,  California  and 
Washington  and  part  owners  of  several  of  the  largest 
tracts  of  redwood,  pine  and  fir  timber  lands  on  the  Pacific 

REDEMPTION   FUND. 

The  mortgage,  under  careful  restrictions,  requires  that 
the  company  must  deposit  with  the  Trustee  $2.00  per  thou- 
sand feet,  log  scale,  for  all  redwood  and  fir  timber  cut, 
based  on  the  estimates  on  file  in  our  office  and  with  the 
Trustee.  The  company  is  required  to  make  this  deposit 
for  each  forty  acres  or  more  before  cutting  any  timber  on 
the  same.  The  provisions  of  the  mortgage  covering  this 
point  are  rigidly  and  carefully  drawn.  This  deposit  ap- 
plies to  the  payment  of  the  principal  of  the  bonds  only, 
and  is  on  a  basis  of  double  the  amount  for  which  the 
timber  is  bonded  and  will  operate  to  pay  off  the  entire 
issue  of  bonds  when  less  than  one-half  of  the  standing 
timber  has  been  cut. 

Should  the  amount  deposited  under  this  redemption 
fund  exceed  the  amount  of  bonds  maturing  in  any  year, 
the  Trustee  is  required  to  purchase  or  call  for  redemption, 
at  a  premium  of  3  per  cent,  and  accrued  interest,  bonds 
of  an  amount  sufficient  to  exhaust  the  surplus.  Through 
the  operation  of  this  redemption  fund  the  bonded  debt  per 
thousand  feet  of  timber  is  decreased  until  the  last  series 
of  bonds  are  secured  at  the  rate  of  only  ten  cents  per  thou- 
sand feet.  In  other  words,  the  equity  of  this  loan  in- 
creases as  the  bonds  are  paid  off,  without  taking  into 
account  any  increase  in  the  value  of  the  timber  lands. 

BOND  ISSUE. 
Proceeds  of  this  bond  issue  will  be  used  to  retire  all 
the  outstanding  obligations  of  the  company,  and  will  leave 
it  entirely  free  from  any  indebtedness  outside  of  this  bond 
issue. 

TIMBER  VALUES. 

It  is  now  a  matter  of  common  knowledge  that  standing 
timber  is  becoming  more  scarce  and  higher  in  market 
price.  This  increase  in  values  has  been  especially  marked 
within  the  last  four  years,  owing  to  the  rapid  depletion 
of  the  forests  to  supply  the  constantly  increasing  demand 
for  lumber.  The  following  is  taken  from  statistics  of  the 
Forest  Service,  United   States  Department  of  Agriculture: 

"The  consumption  of  lumber  per  capita  is  greater  than 
ever  before,  and  the  timber  of  this  country  is  being  con- 


BOND   CIRCULARS  419 

sumed  tbree  to  four  times  as  fast  as  its  natural  increase. 
The  increase  in  population  from  1880  to  1900  was  52  per 
cent,  but  the  increase  in  lumber  consumption  was  94  per 
cent.  During  the  period  from  1899  to  1906  the  increase  in 
production  of  redwood  lumber  (which  is  the  principal 
timber  standing  on  these  lands)  was  over  83  per  cent  and 
the  increase  in  the  value  of  redwood  was  64  per  cent. 
During  the  same  period  the  increase  in  production  of 
fir  timber  was  186  per  cent  and  the  increase  in  value  was 
63  per  cent." 

With  an  increasing  demand  for  lumber  products  and 
a  decreasing  supply  of  the  raw  material — standing  timber 
■ — it  is  evident  that  the  values  of  timber  lands  will  con- 
tinue to  increase.  There  is  today  no  commodity  more 
stable  in  price  than  standing  timber,  and  consequently  no 
security  upon  which  money  can  be  loaned  with  greater 
safety. 

FIRE  HAZARD. 

It  is  a  well  known  fact  that  a  redwood  forest  has  never 
been  destroyed  by  fire.  There  is  no  fire  hazard  whatever 
in  redwood  timber.  This  statement  will  be  verified  by 
lumbermen  and  other  persons  familiar  with  this  timber. 
The  matter  of  fire  hazard  is  not  taken  into  consideration 
by  lumbermen  and  others  who  own  or  are  considering  the 
purchase  of  redwood  timber.  This  is  one  of  the  most  im- 
portant  facts   in   connection   with   this  security 

TITLES  AND  MORTGAGE. 

The  titles  to  the  land  and  timber  covered  by  this  mort- 
gage have  been  carefully  examined  and  certified  by  our 
counsel,  Adams  &  Candee,  of  Chicago,  under  whose  legal 
direction  the  mortgage  and  bonds  were  prepared. 

The  bonds  are  issued  in  denominations  of  $500  and 
$1,000  each  and  are  due  and  payable  serially  from  five  to 
nine  years  (see  first  page).  All  or  any  of  the  bonds  may 
be  paid  at  any  interest  period  prior  to  maturity  on  sixty 
days'  notice,  at  a  premium  of  3  per  cent  and  accrued  in- 
terest. 

Prices  of  bonds  for  long  or  short  time,  par  and  accrued 
interest,  yielding  six  per  cent. 

The  above  statements  are  based  on  information  and 
data  believed  by  us  to  be  trustworthy  and  reliable,  and 
while  not  guaranteed  by  us,  have  been  accepted  and  acted 
upon  by  us  in  the  purchase  and  appraisal  of  the  bonds 
and  the  property  securing  the  same. 

CLARK  L.  POOLE  &  CO., 

Bankers, 

Commercial  National  Bank  Bldg.,  Chicago,  111. 


420 


TIMBER  BONDS 


EXHIBIT  NO.  14. 

Charles  M.  Smith  &  Company,  Bonds  for  Investment,  First 
National  Bank  Building,  Chicago. 

This  issue  of  bonds  is  a  legal  investment  for  Michigan 
Savings  Banks  and  Trust  Funds. 

We  own  and  offer  $238,000  (total  issue  $275,000)  closed 
First  Mortgage  6  per  cent.  Serial  Gold  Bonds  of  the 
Conasauga  Lumber  Company,  Conasauga,  Tenn. 

Dated  June  1,  1910.  Due  serially  as  shown  below.  Inter- 
est coupons  payable  June  and  December  1st,  at  First 
National  Bank  of  Detroit  or  First  National  Bank  of 
Chicago.  Redeemable  on  any  interest  date  after  sixty 
davs'  notice  at  102 1^  and  interest.  Denominations, 
$500  and  $1,000.  Principal  may  be  registered  with  the 
Trustee.  Bonds  mature  as  follows: 
$  1,000  December  1.  1911       M5.000  December  1,  1915 


14,000  June  1,  1912 

12,000  December  1,  1912 
15,000  June 
15,000  December 
15,000  June 
13,500  Decembei 
15,000  June 


1.  1913 
1,  1913 
1,1914 
1,  1914 
1,  1915 


15.000  June  1,  1916 

15.000  December  1,  1916 
15,000  June  1,  1917 

15,000  December  1,  1917 
15,000  June  1,  1918 

15,000  December  1,  1918 
15,000  June  1,  1919 


$17,500  December  1,  1919 
Price,  par  and  interest,  yielding  6  per  cent. 

SECURITY. 

The  mortgage  to  the  Security  Trust  Company,  of  De- 
troit, Mich..  Trustee,  is  a  first  lien  on  about  33,000  acres  of 
virgin  timber  lands,  containing  168,400,000  feet  of  stand- 
ing merchantable  timber,  consisting  principally  of  white 
and  yellow  pine,  poplar,  and  white  and  red  oak,  lying  in  a 
solid  body  in  Polk  County,  Tennessee.  The  mortgage  also 
covers  a  modern  band  and  gang  saw  mill,  with  a  capacity 
of  20,000,000  feet  per  annum,  planing  mill,  dry  kilns,  etc., 
lOy..  miles  of  completely  equipped  standard  gauge  logging 
railroad,  store  building  and  employees'  houses,  located  at 
Conasauga,  Tenn. 

The  timber  mortgaged  is  conservatively  appraised  at 
$822,517.50,  or  about  three  times  the  amount  of  this  bond 
issue. 

RAILWAY,   ESTIMATES   AND   APPRAISAL. 

The  company's  plant  at  Conasauga,  Tenn.,  is  located  on 
the  main  line  of  the  Louisville  &  Nashville  Railway,  afford- 
ing excellent  shipping  facilities. 

J.  P.  Brayton,  the  well  known  public  estimator,  of 
Chicago,  estimates  the  quantity  of  merchantable  standing 


BOND   CIRCULARS  421 

timber  at  168,400,000  feet,  log  scale,  the  appraised  value  of 
which  is  as  follows:  p^^^  Per  1000. 

Yellow  Pine 71,275,000  $3.50         $249,462.50 

White   Pine    30,425,000  6.00  182,550.00 

Poplar    13,705,000  12.00  164,460.00 

White  Oak   11,660,000  6.00  69,960.00 

Red   Oak 14,885,000  4.00  59,540.00 

Other  Hardwoods 26.450,000  77,160.00 

Oak  and  Hemlock  Bark,  6.635  cords 6,635.00 

Oak  R.  R.  Ties,  127,500  pieces 12,750.00 

$822,517.50 
FINANCIAL  STATEMENT. 
(Before  issuance  of  bonds.) 

ASSETS. 

Quick  assets — cash,  bills  and  ac- 
counts receivable,  manufactured 
lumber  and  merchandise $120,564.12 

Standing  timber  800,000.00 

Real  estate  (store,  office  and  dwell- 
ings)         23.427.79 

Logging   railroad    and 

logging  equipment .  .$117,239.78 

Saw  and  planing  mill.     62.879.89 

180,119.67 

$1,124,111.58 
LIABILITIES. 

Accounts   payable $26,951.88 

Bills  payable 197,999.76     $224,951.64 

Capital  stock 275,600.00 

Surplus   623,559.94 

$1,124,111.58 
The  above  statement  does  not  include  any  valuation  on 
about  33,000  acres  of  land  owned  in  fee  simple. 

PURPOSE  OF  BOND   ISSUE. 

The  proceeds  of  the  bonds  will  be  used  to  pay  balance 

on    timber   purchase    (included    in    bills   payable   account), 

retire  floating  indebtedness  and  provide  additional  working 

capital,  leaving  the  bonds  as  the  only  debt  of  the  company. 

HISTORY  AND   MANAGEMENT. 
The  Conasauga  Lumber  Company  was  organized  in  1907 
by  well  known    and    successful    lumbermen  of    Nashville, 
Tenu.     These  men,  now  members  of  its  Board  of  Directors, 
are: 


422  TIMBER  BONDS 

C.  B.  Benedict,  Conasauga,  Tenn.,  President  and  General 
Manager  of  Conasauga  Lumber  Company. 

M.  F.  Greene,  Nashville,  Tenn.,  Vice-President  of  Cona- 
sauga Lumber  Company,  and  Secretary  and  Treasurer  of 
The  Davidson.  Hicks  &  Greene  Company,  Lumber  Mer- 
chants, Nashville,  Tenn. 

John  Byrns,  Cincinnati,  0.,  Secretary  and  Treasurer  of 
Conasauga  Lumber  Company. 

Walter  Keith,  Nashville,  Tenn.,  Vice-President  of  Fourth 
National  Bank  of  Nashville,  and  owner  of  a  large  interest 
in  Keith,  Simmons  &  Co.,  Nashville,  Tenn.,  dealers  in  Hard- 
ware and  Mill  Supplies. 

John  W.  Love,  Nashville,  Tenn.,  of  Love,  Boyd  &  Co., 
Lumber  Merchants. 

Arthur  B.  Ransom,  Nashville,  Tenn.,  President  of  John 
B.  Ransom  &  Company,  Lumber  Merchants,  and  of  Nashville 
Hardwood  Flooring  Company,  manufacturers  of  flooring. 

C.  H.  Benedict,  Nashville,  Tenn.,  retired  capitalist. 

Since  its  organization  the  company  has  been  continu- 
ously and  profitably  engaged  in  the  manufacture  of  lumber. 

SINKING  FUND. 

The  trust  deed  provides  that  before  any  timber  is  cut 
the  company  must  pay  to  the  Trustee  as  a  sinking  fund  for 
the  redemption  of  bonds,  $3.00  per  thousand  feet,  according 
to  the  timber  estimates  on  file  with  the  Trustee.  After  re- 
moval of  timber  the  land  may  be  released  by  the  Trustee 
on  payment  of  $3.50  per  acre  into  the  sinking  fund. 

The  sinking  fund  is  sufficient  to  retire  all  the  bonds 
before  sixty  per  cent  of  the  timber  mortgaged  has  been  cut. 

FIRE  HAZARD. 

Timber  located  in  the  southern  states  has  never  been 
destroyed  by  fire.  Absence  of  undergrowth  and  height  of 
trees  renders  any  serious  fire  damage  impossible. 

EXAMINATION. 

Before  purchasing  this  issue  we  made  a  thorough  per- 
sonal investigation  of  all  of  the  conditions  on  which  the 
security  depends.  All  titles  to  the  property  have  been 
carefully  examined  and  approved  by  competent  attorneys, 
under  whose  supervision  the  mortgage  was  drawn  and  the 
bonds  issued. 

Copies  of  trust  deed,  attorney's  opinion,  detailed  timber 
estimates,  and  other  data  pertinent  to  the  issue  may  be 
seen  at  our  office. 

All  statements  herein  are  official  or  are  based  on  infor- 
mation  and    data   believed    by   us   to   be   trustworthy   and 


BOND   CIRCULARS  423 

reliable,  and  while  not  guaranteed,  have  been  accepted  and 
acted  upon  by  us  in  the  purchase  and  appraisal  of  the 
bonds  and  the  property  securing  the  same. 

Bonds  are  offered  subject  to  prior  sale. 

Bonds  will  be  delivered  where  desired,  express  prepaid, 
with  exchange. 

Telegrams  may  be  sent  at  our  expense. 

CHARLES   M.   SMITH   &   COMPANY, 

Bankers 

First  National  Bank  Bldg.,  Chicago,  111. 

EXHIBIT  NO.  15. 

Lyon,  Gary  &  Company,  204  Dearborn  St.,  Chicago,  111. 

$40,000    Fischer    Lumber   Co.    6    per    cent   First    Mortgage 

Serial  Gold  Bonds. 
Dated  January  2,  1911,  maturing  semi-annually  July  1,  1912, 

to  January  1,  1916.     Redeemable  at  103  and  interest,  in 

whole  or  in  part  on  any  interest  day,  on  90  days'  notice. 

Principal  and  interest  payable  in  Chicago  or  Portland, 

Ore.,  on  July  1st  and  January  1st. 
Coupon   Bonds   at   $1,000   each;    may   be    registered   as   to 

principal.     Union  Trust  Company  of  Chicago  and  John 

K.  Lyon,  Trustees. 

MATURITIES. 

$5,000  July  1,  1912  $5,000  July  1,  1914 

5,000  Jan.  1,  1913  5,000  Jan.  1,  1915 

5,000  July  1,  1913  5,000  July  1,  1915 

5,000  Jan.  1,  1914  5,000  Jan.  1,  1916 

Principal  and  interest  guaranteed  by  endorsement  of  Fred 
Fischer,  Sr.,  Henry  Fischer,  Fred  Fischer,  Jr.,  Walter 
Fischer  and  Carl  E.  Fischer;  all  being  stockholders  and 
directors  of  the  company. 
The  security  for  the  bonds  may  be  summarized  at  fol- 
lows: 

1.  First  Mortgage  lien  on  1140  acres  of  land  owned  in 
fee,  situated  in  the  Counties  of  Linn  and  Lane,  in  the  State 
of  Oregon,  upon  which  there  are  approximately  72,000,000 
feet  of  standing  and  living  yellow  fir  timber. 

2.  The  timber  may  be  conservatively  valued  at  $1.25 
per  thousand  feet  or  a  total  valuation  of  approximately 
$90,000. 

3.  There  is  also  conveyed  by  the  mortgage  as  further 
security  to  the  loan,  a  saw  and  planing  mill  plant  and  log- 
ging equipment,  which  may  be  conservatively  valued  at 
$30,000. 


424  TIMBER  BONDS 

4.  The  loan  is  at  the  rate  of  55  cents  per  thousand  feet 
on  the  timber. 

5.  Under  the  trust  deed  the  company  is  required  to 
pay  to  the  Trustee  $1.50  per  thousand  feet  for  timber 
desired  to  be  cut;  from  this  provision  it  will  be  seen  that 
the  whole  loan  will  be  paid  before  practically  one-third  of 
the  timber  pledged  is  cut. 

6.  Frequent  inspection  of  the  property  is  provided  for 
at  the  expense  of  the  borrower. 

7.  Should  the  timber  be  damaged  by  fire  or  the  other 
elements,  the  company  must  within  sixty  days  after  such 
loss  has  been  determined  pay  to  the  Trustee  75  cents  per 
thousand  feet  for  the  timber  so  damaged,  and  an  addi- 
tional 75  cents  when  the  timber  is  removed. 

8.  The  hazard  of  fire  is  minimized  by  the  property 
being  located  in  what  is  called  the  "fog-belt"  just  west  of 
the  Cascade  Mountains. 

9.  The  valuations,  titles  and  legal  matters  have  been 
passed  on  by  competent  parties;  the  timber  and  its  value 
by  our  own  cruisers  and  the  titles  and  legal  matters  by 
W.  W.  Gurley  of  Chicago  and  E.  E.  Barthell  of  Nashville, 
Tenn. 

10.  The  whole  property  lies  within  a  few  hours'  jour- 
ney of  Portland,  Ore. 

All  statements  made  in  this  circular  are  based  upon 
information  which  we  regard  as  reliable  and  upon  which 
we  acted  in  the  purchase  and  valuation  of  the  securities 
offered;   such  offerings  being  made  subject  to  prior  sale. 

Price  on  application. 

LYON,  GARY  &  COMPANY, 

Lumbermen    and    Bankers, 

204  Dearborn  St.,  Chicago,  111. 

EXHIBIT  NO.  16. 

Circular  No.  677— September,  1909. 

Peabody,  Houghteling  &  Co.,  105  S.  LaSalle  St.,  Chicago. 

(Established  1865.) 

Cable  address,  "Hought,"  Chicago.     Codes  used,  Lieber  and 

A,  B,  C,  5th  Edition. 
$200,000  First  Mortgage  6  per  cent  Serial  Gold  Bonds  of 

the  Craig  Mountain  Lumber  Company. 
Dated  August  2.  1909.  Payable  in  series  as  below.  Coupon 
Bonds  of  $500  and  $1,000  denominations  with  privilege 
of  registration  as  to  principal.  Principal  and  semi 
annual  interest  payable  at  the  office  of  Peabody,  Hough- 
teling &  Co.,  Chicago,  111.  First  Trust  &  Savings  Bank, 
Chicago,  and  Augustus  S.  Peabody,  Trustees. 


BOiND   CIRCULARS  425 

i 

MATURITIES. 

$25,000  1       year,     August       1.  1910 
25,000  1^2  years,  February   1,  1911 
25,000  2       years,  August       1,  1911. 
25,000  21-  years.  February   1,  1912 
25,000  3       years,  August       1,  1912 
25,000  3V'.  years,  February    1,  1913 
25,000  4       years.  August       1,  1913 
25,000  41-;  years,  February   1,  1914 
25,000  5       years.  August       1,  1914 
25,000  5V,  years,  February   1,  1915 
25,000  6       years,  August       1,  1915 
25,000  e^L.  years,  February  1,  1916 
The    above   schedule    of   maturities    comprises    $300,000, 
which  is  the  total  issue  of  bonds  authorized  by  the  mort- 
gage.     $100,000.  however,  will  not  be  issued  until  the  com- 
pany has  acquired  and  placed  under  the  mortgage  sufficient 
additional  lands  to  bring  its  total  acreage  up  to  a  minimum 
of  9,500  and  its  total  stumpage  to  at  least  175,000,000  feet. 
These  additional  lands  and  timber  will  be  acquired  in  the 
immediate  future  and  are  subject  to  the  approval  of  Pea- 
body,    Houteling   &    Co.      When     the     entire     $300,000     of 
bonds    has   been    issued,    the    valuation    of   the    company's 
assets  will  be  in  excess  of  $1,000,000. 

VALUATION. 

These  bonds,  which  are  issued  for  the  purpose  of  com- 
pleting the  company's  mills  and  railroad,  are  secured  by 
an  absolute  First  Mortgage  on  5900  acres  of  land  and  138,- 
000,000  feet  of  merchantable  timber  located  in  Nez  Perce 
County,  Idaho,  together  with  saw  mill,  planing  mill,  rail- 
road, rolling  stock,  and  logging  equipment. 

Based  on  an  examination  of  the  company's  timber,  made 
on  our  behalf  by  the  well-known  expert,  Mr.  J.  P.  Brayton, 
and  on  the  estimated  cost  of  the  company's  mills  and  rail- 
road, we  value  the  security  behind  these  bonds  as  follows: 

Land  and  timber $597,650 

Plant,  logging  equipment  and  railroad 212,000 

Total  fixed  assets $809,650 

SINKING  FUND. 

Under  the  terms  of  the  Mortgage,  the  company  agrees 
to  pay  in  to  the  Old  National  Bank  in  Spokane  on  or  before 
the  fifteenth  day  of  every  month,  beginning  the  second 
month  after  the  commencement  of  operations,  subject  to 
the  Trustee's  order,  a  sinking  fund  of  $3.50  per  thousand 


426  TIMBER  BONDS 

feet  on  all  timber  cut  from  the  company's  lands  during  the 
preceding  calendar  month,  or  months.  Any  surplus  left  in 
the  Sinking  Fund  at  the  end  of  any  year,  at  the  company's 
option,  may  be — 

1.  Left  in  the  Sinking  Fund  at  interest; 

2.  Used  to  retire  the  bonds  in  the  reverse  of  their  nu- 
merical order  at  102^^  and  interest. 

3.  Used  for  the  purchase  of  additional  timber  lands, 
clear  of  encumbrance,  which  will  become  additional  security 
for  the  bonds. 

In  the  last  event,  however,  the  investment  of  the  surplus 
sinking  fund  is  strictly  subject  to  the  written  approval  of 
Peabody,  Houghteling  &  Company. 

This  Sinking  Fund  is  sufl5cient  to  pay  off  the  entire 
principal  of  these  bonds  from  the  exhaustion  of  less  than 
one-half  of  the  timber  security. 

SECURITY. 

The  security  behind  these  bonds  consists  of  timber  lands 
in  Nez  Perce  County,  Idaho,  about  twenty  miles  in  a  direct 
line  southeast  of  the  city  of  Lewiston.  These  lands  com- 
prise— 

5,980  acres  of  land  and  timber  owned  in  fee  simple, 
1,042  acres  of  timber  owned  in  fee  simple, 


Total,  6,942  acres 

These  lands  contain,  according  to  the  estimate  of  Mr. 
J.  P.  Brayton — 

132,405,000  feet  of  pine, 
3,626,000  feet  of  fir. 
2,320,000  feet  of  tamarack, 


Total,  148,350,000  feet  of  merchantable  timber. 

These  timber  lands  are,  for  the  most  part,  level  and  the 
timber  runs  large  and  smooth  and  practically  free  from 
unsound  trees.  Most  of  the  lands  are  suitable  for  farming 
purposes;  the  soil  is  fertile,  and  the  lands  will  be  in  good 
demand  at  from  $15.00  to  |20.00  an  acre  after  the  timber 
has  been  removed. 

These  bonds  are  also  secured  by  the  company's  mills 
and  railroad,  which  will  be  completed  and  in  operation 
within  six  months. 

The  mills,  which  will  consist  of  saw  mill,  planing  mill, 
dry  kiln,  lumber  sheds,  etc.,  with  an  annual  capacity  of 
20,000,000  feet,  will  be  of  the  most  up-to-date  character  in 
arrangement,  construction  and  equipment,  and  will  enable 
the  company  to  produce  lumber  at  a  low  rate.  The  rail- 
road will  be  about  six  miles  long,  of  standard  gauge  and 


BOND   CIRCULARS  427 

construction,  fully  equipped  to  handle  the  company's  busi- 
ness, and  will  connect  with  the  Northern  Pacific  Railroad. 

OPERATION. 

Because  of  the  close  proximity  of  the  timber  to  its  mill, 
the  ideal  character  of  the  laud  for  economic  logging,  the 
first-class  equipment  at  its  disposal,  and  the  unusually 
large  percentage  of  high  grade  lumber,  the  company's 
operations  should  be  exceedingly  profitable. 

In  his  report  of  August  5th.  Mr.  J.  P.  Brayton  esti- 
mates the  cost  of  manufacturing  from  the  stump  to  the  car 
at  18.50  per  thousand  feet.  He  considers  $19.00  per  thou- 
sand leet  f.  0.  b.  cars  at  the  mill  a  safe  average  selling 
price.  On  this  basis,  the  stumpage  of  175,000,000  feet  be- 
hind the  total  bond  issue  of  $300,000  will  produce  the  fol- 
lowing results: 

175,000,000  feet  at  average  selling  price  of  $19.00 
f .  0.  b.  cars $3,325,000 

Cost  of  manufacturing  and  loading  on  cars  at  $8.50 
per  thousand  feet 1,487,500 

Net  amount  available  for  the  protection  of  prin- 
cipal and  interest  of  these  bonds 1,837,500 

Total  amount  of  principal  and  interest  of  these 

bonds 367,500 

On  this  basis  the  stumpage  will  produce  over  five  times 
the  amount  necessary  to  protect  both  principal  and  interest 
of  the  entire  issue. 

MANAGEMENT  AND  OWNERSHIP. 

The  stockholders  of  the  Craig  Mountain  Lumber  Com- 
pany are  men  of  substantial  means  and  large  experience, 
and  the  management  of  the  company's  affairs  is  in  conserva- 
tive and  thoroughly  practical  hands. 

The  stockholders  have  an  actual  cash  investment  of 
$300,000  behind  these  bonds. 

We  have  investigated  these  properties  thoroughly.  The 
timber  lands  have  been  examined  and  reported  on  in 
detail  by  Mr.  J.  P.  Brayton,  one  of  the  most  experienced 
and  best  known  timber  experts  in  the  country.  The  com- 
pany's books  have  been  audited  by  the  Investors  Audit 
Company,  and  titles  to  the  company's  property  and  all  legal 
matters  pertaining  to  this  issue  have  been  approved  by 
F.  M.  Goodwin,  Esq.,  of  Spokane.  Wash. 

We  recommend  these  bonds  as  a  safe  investment  for 
the  following  reasons: 

First:  The  value  of  the  security  is  over  three  times  the 
amount  of  the  issue. 


428  TIMBER  BONDS 

Second:  The  stockholders  have  an  actual  cash  invest- 
ment of  over  $300,000  behind  the  bonds. 

Third:  The  timber  behind  these  bonds  is  of  unusually 
fine  quality  and  it  is  absolutely  exempt  from  fire-risk. 

Fourth:  The  stockholders  of  the  company  are  finan- 
cially strong  and  well  able  to  protect  their  investment,  and 
the  management  is  experienced,  successful  and  thoroughly 
practical. 

The  bonds  will  be  ready  for  delivery  about  August  25th 
and  will  be  delivered  at  any  bank  desired,  express  prepaid. 

Price,  par  and  accrued  interest. 

Telegraphic  orders  may  be  sent  at  our  expense. 

PEABODY,  HOUGHTELING  &  CO., 

105  S.  LaSalle  Street, 
Chicago. 

EXHIBIT  NO.  17. 
Allerton,  Greene  &  King,  Bonds,  The  Rookery,  Chicago. 

We  own  and  offer  $125,000  The  Hardwood  Manufacturing 
Company,  Louisville,  Ky.,  First  Mortgage  6  per  cent. 
Gold  Bonds. 

Dated  March  1,  1911.  Due  serially  in  semi-annual  innstall- 
ments.  Redeemable  on  any  interest  date  at  102J/.  and 
interest.  Denominations,  $1000  and  $500.  Principal 
and  semi-annual  interest  payable  at  the  Union  Trust 
Company,  Trustee,  Detroit,  Mich. 

MATURITIES. 

$5,000  March   1,  1912  $7,500  Sept.  1,  1916 

7,500  Sept.      1,  1912  7,500  March  1,  1917 

7,500  March   1,  1913  7,500  Sept.  1,  1917 

7,500  Sept.     1.  1913  7,500  March  1,  1918 

7,500  March    1,  1914  7,500  Sept.  1,  1918 

7,500  Sept.     1,  1914  7,500  March  1,  1919 

7,500  March    1,  1915  7,500  Sept.  1,  1919 

7,500  Sept.     1,  1915  7,500  March  1,  1920 
7,500  March   1,  1916 

"We  recommend  these  bonds  as  a  safe  and  conservative 
investment  for  the  following  reasons: 

1.  All  of  the  lands  including  20,000  acres  of  virgin 
hardwood  timber,  also,  mill  site  property,  is  owned  in  fee 
simple  by  the  company. 

2.  The  bond  issue  is  secured  by  a  closed,  absolute  first 
mortgage. 

3.  The  bond  issue  is  only  about  one-fifth  of  the  value 
of  the  property  mortgaged. 


BOND  CIRCULARS  429 

4.  The  Sinking  Fund  will  retire  the  entire  bond  issue 
before  one-half  of  the  timber  is  cut. 

5.  The  assets  of  the  company,  exclusive  of  the  timber 
lands,  is  about  on  and  one-half  times  the  amount  of  the 
bond  issue. 

6.  The  owners  and  managers  of  the  company  are  ex- 
perienced and  successful  lumber  men. 

7.  The  interest  return  is  attractive. 
Price,  100  and  interest,  yielding  6  per  cent. 

ORGANIZATION. 

The  Hardwood  Manufacturing  Company  was  organized 
under  the  laws  of  Kentucky,  having  its  principal  office  in 
the  City  of  Louisville,  Ky.,  in  1909.  The  stockholders  and 
directors  are  experienced  and  successful  business  men. 
Mr.  A.  L.  Musselman,  President  of  the  Company,  has  been 
identified  with  the  lumber  business  for  the  past  twenty- 
five  years  and  is  regarded  as  one  of  the  best  posted  men 
on  hard  woods  in  the  South. 

Mr.  Henry  Koehler,  Vice-President  of  the  Company, 
owns  and  operates  the  largest  retail  lumber  business  in 
the  City  of  Louisville,  Ky.  These  men  are  in  control  of 
the  Company's  management,  giving  it  their  personal  atten- 
tion and  the  benefit  of  their  practical  experience. 

SECURITY. 

These  bonds  are  secured  by  a  closed,  absolute  first 
mortgage  on  all  of  the  property  of  the  Company  now  owned 
or  hereafter  acquired,  consisting  of  about  20,000  acres  of 
uncut  hardwood  timber  lands  owned  in  fee  simple  by  the 
Company.  This  tract  contains  over  100,000,000  feet  of 
standing  merchantable  timber,  consisting  principally  of 
White  Oak,  Red  Oak,  Gum,  Cypress,  Hickory,  Cherry  and 
Pine.  Also  its  mills,  logging  machinery,  barges,  tugs, 
launches,  etc. 

The  Company's  plant  consists  of  a  band  sawmill,  hav- 
ing a  capacity  of  50,000  feet  per  day. 

PURPOSE  OF  BOND  ISSUE. 

The  proceeds  of  this  issue  will  liquidate  all  other  in- 
debtedness of  the  Company  and  will  provide  funds  for  ad- 
ditions and  improvements  and  leave  ample  funds  for  work- 
ing capital. 

VALUATION    OF    PROPERTY. 

The  above  lands  have  been  carefully  cruised  by  Mr.  J. 
P.  Brayton,  of  Chicago,  the  well  known  timber  expert.  Mr. 
Brayton  estimates  the  stand  of  merhantable  timber  at  over 


430  TIMBER  BONDS 

100,000,000  feet  and  the  value,  exclusive  of  plant  and  equip- 
ment, at  $420,000. 

In  addition  to  the  timber  above  described,  the  bonds 
are  further  secured  by  closed,  first  mortgage  on  real  es- 
tate, plants  and  equipment  located  in  the  City  of  Monroe, 
La.,  all  of  which  is  owned  in  fee  by  The  Hardwood  Man- 
ufacturing Company.  The  value  of  these  assets,  exclusive 
of  the  timber  lands,  is  estimated  at  $175,000. 

The  total  net  assets  of  the  Company,  upon  which  these 
bonds  are  an  absolute  first  mortgage,  are  about  $600,000,  a 
sum  equal  to  nearly  FIVE  TIMES  THE  AMOUNT  OF  THE 
BOND  ISSUE.  This  sum  does  not  include  any  valuation 
on  the  land,  which  is  worth  at  least  five  dollars  per  acre, 
or  about  $100,000  in  addition  to  the  above. 

SINKING  FUND. 

The  Trust  Deed  provides  that  the  Company  will,  on  the 
first  days  of  March,  June,  September  and  December,  file 
with  the  Union  Trust  Company,  Trustee,  a  sworn  state- 
ment of  all  merchantable  timber  cut  upon  the  lands  dur- 
ing the  three  calendar  months  preceding  the  filing  of  such 
statement,  and  will  within  fifteen  days  after  filing  of  such 
statement,  pay  into  the  Trustee,  in  cash,  the  sum  of  $3.00 
for  each  1,000  feet  of  Oak  timber  and  the  sum  of  $2.00  for 
each  1,000  feet  of  other  timber  so  cut. 

Should  the  Sinking  Fund  exceed  the  amount  of  bonds 
maturing  in  any  year,  the  Trustee  is  required  to  call  for 
redemption,  at  102i/^  and  accrued  interest,  unmatured 
bonds  to  the  amount  suflScient  to  exhaust  the  surplus.  The 
Sinking  Fund  will  be  sufllcient  to  retire  all  of  the  bonds 
before  one-half  the  timber  has  been  cut. 

LOCATION   AND    OPERATION. 

This  tract  of  20,000  acres  of  virgin  hardwood  timber 
land  is  situated  along  the  Bayou  D'Arbonne,  which  flows 
into  the  Ouachita  River  a  few  miles  above  the  City  of 
Monroe,  La.  The  timber  lies  on  each  side  of  this  naviga- 
ble stream,  within  an  average  distance  of  three-quarters 
of  a  mile.  The  logging  operation  is  a  simple  one  and  re- 
quires no  expensive  railroad  tracks  and  equipment.  The 
logs  are  taken  from  the  property  by  means  of  a  skidder 
and  are  then  hauled  to  the  sawmill,  located  in  the  City  of 
Monroe,  an  average  distance  of  about  fifteen  miles.  The 
timber  is  cut  into  lumber  and  placed  upon  railroad  cars 
for  shipment.  The  Company  has  access  to  the  St.  Louis 
&  Iron  Mountain  R.  R.,  Vicksburg,  Shreveport  &  Pacific 
R.  R.  and  Arkansas,  Louisiana  &  Gulf  R.  R. 


BOND   CIRCULARS  431 

LEGALITY. 

The  mortgage  has  been  drawn  and  the  titles  to  the 
timber  covered  by  this  mortgage  have  been  passed  upon 
by  Hon.  Charles  B.  Wood  of  Chicago.  Adequate  insurance 
covering  the  mill  and  equipment  is  pledged  under  the  mort- 
gage. 

FINANCIAL    STATEMENT. 

Financial  condition  of  the  Company  after  the  proceeds 
of  bonds  are  included,  is  as  follows: 

ASSETS. 

Standing  Timber   (20,000  acres  owned  in  fee) $420,000 

Sawmill  Plant,  Equipment,  etc 175,000 

$595,000 

LIABILITIES. 

Capital  Stock    (fully  paid) $172,000 

First  Mortgage  Bonds  (this  issue) 125,000 

Surplus 298,000 

$595,000 
We  offer  only  such  bonds  as  we  consider  suitable  for  the 
investment  of  our  own  funds.  All  statements  in  this  cir- 
cular are  our  own  opinion  or  are  based  on  information 
which  we  regard  as  reliable.  Bonds  will  be  delivered  to 
any  responsible  bank,  charges  prepaid.  Telegrams  may  be 
sent  at  our  expense. 

ALLERTON,   GREENE   &   KING, 
Chicago. 

EXHIBIT    NO.    18. 

CHARLES  M.  SMITH  &  COMPANY, 

Bonds  for  Investment, 

First  National  Bank  Building. 

Chicago. 

This  issue  of  bonds  is  secured  by  standing  timber,  a  nat- 
ural product  being  consumed  more  rapidly  then  it  is 
being  replaced — a  security  constantly  increasing  in 
value.  The  arrangement  whereby  a  portion  of  the 
bonds  is  paid  every  six  months,  beginning  October  1. 
1911,  Increases  the  security  back  of  the  outstanding 
and  later  maturing  bonds. 

We  own  and  offer:  $150,000  First  Mortgage  6  Per  Cent 
Serial  Gold  Bonds  of  the 

WYATT    LUMBER    COMPANY,    LIMITED, 
Wyatt,  Louisiana. 

Due  serially  as  shown   below.     Interest  coupons  payable 


432  TIMBER  BONDS 

April  and  October  1st,   at  Central  Trust   Company  of 
Illinois,  Trustee,  Chicago.  Redeemable  on  any  inter- 
est date  after  sixty  days'  notice  at  102  and  interest. 
Denominations,    $500    and  $1,000.      Principal    may   be 
registered  with  the  Trustee.    Bonds  mature  as  follows: 
$15,000  October    1,  1911  $12,000  April        1,  1915 
7,500  April        1.  1912  12,000  October    1,  1915 
7,500  October    1,  1912  12,000  April        1,  1916 
12,000  April        1,  1913  12,000  October    1,  1916 
12,000  October    1,  1913  12,000  April        1,  1917 
12,000  April        1,  1914  12,000  October    1,  1917 
12,000  October   1,  1914 

Price,  par  and  interest,  yielding  6  per  cent. 

SECURITY. 

The  mortgage  to  the  Central  Trust  Company  of  Illinois, 
of  Chicago,  is  a  first  lien  on  124,632,000  feet  of  standing, 
merchantable  timber,  consisting  of  yellow  pine,  white  oak 
and  other  hardwoods  located  on  23,629  acres  of  land,  about 
two-thirds  of  which  is  owned  in  fee  simple,  lying  in  prac- 
tically a  solid  body  in  Sabine  Parish,  Louisiana.  The 
mortgage  also  covers  a  modern  sawmill  with  a  capacity  of 
15,000,000  feet  per  annum,  planing  mills,  dry  kilns,  store 
building  and  employes'  houses,  located  at  Wyatt,  Louisiana. 

A  conservative  appraisement  of  the  timber  mortgaged, 
found  in  detail  on  the  following  page,  shows  it  worth  $460,- 
214 — OVER  THREE  TIMES  the  amount  of  the  bonds.  The 
assets  of  the  Company  are  over  $800,000— OVER  FIVE 
TIMES  the  amount  of  the  bonds.  Principal  and  interest 
is  unconditionally  guaranteed  by  A.  H.  Henderson  and  G. 
E.  Henderson,  of  Wyatt,  Louisiana,  by  endorsement  on  each 
bond. 

ESTIMATES  AND  APPRAISED  VALUE. 

The  yellow  pine  timber  has  been  estimated  by  Lemieux 
Brothers  &  Company,  the  well  known  Public  Estimators,  of 
New  Orleans,  Louisiana.  The  white  oak  and  other  hard- 
woods have  been  estimated  by  Ryan  &  Self,  expert  esti- 
mators of  timber  in  Sabine  Parish.  The  estimate  and  ap- 
praised value  of  the  timber  under  the  mortgage  is  as  fol- 
lows: 

Yellow    Pine 83,050,000  ft.  at  $4.00  per  1,000  ft.$332,200 

White  Oak   14,950,000  ft.  at    5.00  per  1,000  ft.     74,750 

Other    hardwoods.   26,632,000  ft.  at    2.00  per  1,000  ft.     53,264 


Total 124,632,000  ft $460,214 


BOND  CIRCULARS  433 

FINANCIAL  STATEMENT 
Before  issuance  of  bonds: 

ASSETS. 
Cash,   accounts   receivable,   lumber,   merchandise 

and  other  current  and  working  assets $  51,827.78 

Stumpage,  Sabine  Parish $460,214 

Stumpage,  Jackson  Parish  199,800 


$660,014.00 
Saw  mill  plant,  railroad  and  logging  equipment.     89,408.25 


$801,250.03 
LIABILITIES. 
Accounts  and  bills  payable   $154,014.58 

The  Company  owns  about  16,000  acres  of  land  in  fee 
simple,  valued  for  agricultural  purposes  at  $80,000  after 
the  timber  is  removed.  This  item  is  not  included  in  above 
statement. 

PURPOSE    OF    BOND    ISSUE. 

The  authorized  bond  issue  is  $250,000,  of  which  the 
proceeds  of  $150,000  outstanding  will  be  used  to  pay  bal- 
ance on  timber  purchased  (included  in  liabilities)  and  re- 
tire floating  indebtedness.  Under  careful  restrictions  of 
the  Trust  Deed  the  reserved  bonds,  $100,000,  can  be  issued 
for  the  purchase  of  additional  timber  at  the  rate  of  $1.75 
per  thousand  feet  of  merchantable  yellow  pine. 

The  basis  of  the  loan  on  outstanding  bonds  is  $1.22  per 
1,000  feet.  If  the  reserved  bonds  are  issued  as  provided  in 
Trust  Deed  the  basis  of  the  loan  for  the  full  amount  of 
bonds  authorized  would  be  only  $1.37  per  1,000  feet — a  very 
low  rate  for  Southern  timber. 

HISTORY  AND  OPERATION. 

The  Wyatt  Lumber  Company,  Limited,  was  organized  in 
1903,  since  which  time  it  has  been  continuously  and  profit- 
ably engaged  in  the  manufacture  of  lumber  at  Wyatt,  Louis- 
iana. In  addition  to  the  standing  timber  mortgaged  the 
Company  owns  about  50,000,000  feet  of  yellow  pine  unen- 
cumbered at  Wyatt,  Jackson  Parish,  Louisiana.  It  is  now 
cutting  this  timber.  The  saw  mill  plant  has  a  capacity  of 
15,000,000  feet  per  annum,  and  it  is  estimated  this  timber 
will  be  cut  out  in  about  three  years,  when  the  plant  will 
be  removed  to  Sabine  Parish.  Bonds  maturing  during  this 
time  will  be  paid  from  the  proceeds  of  the  unencumbered 
Wyatt  timber,  which  will  leave  a  gradually  increasing  mar- 


434  TIMBER  BONDS 

gin  of  security  for  the  later  maturing  bonds.  The  Com- 
pany's equipment  includes  a  complete  up-to-date  saw  mill, 
planing  mill,  dry  kilns,  etc.,  logging  railroad  and  logging 
equipment,  store  building  and  employes'  houses. 

SINKING  FUND. 

The  Trust  Deed  provides  that  before  any  timber  is  cut 
the  Company  must  pay  to  the  Trustee  as  a  sinking  fund  for 
the  redemption  of  bonds,  $3.50  per  thousand  feet  of  pine 
and  white  oak,  according  to  the  timber  estimates  on  file 
with  the  Trustee.  After  removal  of  timber  the  land  may 
be  released  by  the  Trustee  on  payment  of  $3.50  per  acre 
into  the  sinking  fund. 

The  sinking  fund  is  sufficient  to  retire  all  the  outstand- 
ing bonds  when  about  one-third  of  the  timber  mortgaged 
has  been  cut. 

FIRE  HAZARD. 

Timber  located  in  the  southern  states  has  never  been 
destroyed  by  fire.  Absence  of  undergrowth  and  height  of 
the  trees  render  any  serious  fire  damage  impossible. 

EXAMINATION. 

Before  purchasing  this  issue  of  bonds  we  made  a  thor- 
ough personal  investigation  of  all  the  conditions  on  which 
the  security  depends.  All  titles  to  the  property  have  been 
carefully  examined  and  approved  by  competent  attorneys, 
under  whose  supervision  the  mortgage  was  drawn  and  the 
bonds  issued. 

Copies  of  trust  deed,  attorney's  opinion,  detailed  timber 
estimates,  and  other  data  pertinent  to  the  issue  may  be 
seen  at  our  office. 


All  statements  herein  are  official,  or  are  based  on  in- 
formation and  data  believed  by  us  to  be  trustworthy  and 
reliable,  and,  while  not  guaranteed,  have  been  accepted  and 
acted  upon  by  us  in  the  purchase  and  appraisal  of  the 
bonds  and  the  property  securing  the  same. 

Bonds  are  offered  subject  to  prior  sale. 

Bonds  will  be  delivered  where  desired,  express  prepaid, 
payable  with  exchange. 

Telegrams  may  be  sent  at  our  expense. 

CHARLES   M.   SMITH   &   COMPANY, 

Bankers, 

First  National  Bank  Bldg.,  Chicago,  111. 


BOND   CIRCULARS  435 

EXHIBIT  NO.  19. 

CLARK  L.  POOLE  &  CO., 

BANKERS, 

CHICAGO. 

GUARANTEED   FIRST   MORTGAGE   TIMBER  LAND 

BONDS. 

Secured  by  absolute  First  Mortgage  on  about  NINETY  MIL- 
LION feet  of  merchantable  hardwood  and  pine  timber 
standing  on  lands  OWNED  IN  FEE  SIMPLE,  located 
in  Botetourt  County,  Virginia,  on  the  main  line  of  the 
Norfolk  &  Western  Railroad.  The  mortgage  is  also  a 
first  lien  on  a  modern  Saw  Mill,  with  a  capacity  of  50,- 
000  feet  per  day,  Railroad  and  equipment  and  logging 
equipment.  We  appraise  the  market  value  of  these 
properties  at  $387,865,  or  over  two  and  one-half 
times  the  amount  of  this  bond  issue. 

We  own  and  offer,  subject  to  prior  sale:  $150,000  First 
Mortgage  6  Per  Cent  Gold  Bonds  of  the 

0.  D.  McHENRY  LUMBER  COMPANY 
OF  ARCADIA,   VIRGINIA. 

(P.  O.  Indian  Rock,  Virginia.) 

Capital  and  Surplus  over  $185,000. 

0.  D.  McHenry,  President. 

Hon.  John  G.  McHenry,  Vice-President,  Benton,  Pa. 

1.  W.  Edgar,  Secretary  and  Treasurer. 


Principal  and  interest  GUARANTEED  by  endorsement  on 
each  bond  by  0.  D.  McHenry,  President,  and  I.  W.  Ed- 
gar, Secretary  and  Treasurer. 


Dated  March  1,  1910.     Maturing  in  series  each  six  months, 
September  1,  1910,  to  March  1,  1918.    Authorized  issue, 
$200,000.     Present  issue,  $150,000.     Escrow  bonds,  $50,- 
000. 
Bonds  offered  mature  as  follows: 
$10,000  September   1,1910        $12,500  September  1,1913 
10,000  March  1,1911  12,500  March  1,1914 

10,000  September   1,1911  12,500  September   1,1914 

10,000  March  1,1912  12,500  March  1,1915 

10,000  September  1,1912  15,000  September   1,1915 

10,000  March  1, 1913  15,000  March  1, 1916 

$10,000  September  1,  1916 


Principal  and   interest  payable  at   Central   Trust   Com- 
pany of  Illinois,  Trustee,  Chicago. 


436  TIMBER  BONDS 

The  proceeds  of  this  bond  issue  will  retire  all  out- 
standing indebtedness  of  the  O.  D.  McHenry  Lumber  Com- 
pany, other  than  current  obligations  and  provide  them 
with  ample  working  capital. 

PROPERTIES    COVERED    BY   MORTGAGE. 
TIMBER. 

This  mortgage  to  the  Central  Trust  Company  of  Illinois, 
as  Trustee,  is  a  first  lien  on  20,100  acres  of  Botetourt 
County,  Virginia,  adjoining  the  main  line  of  the  Norfolk 
&  Western  Railroad,  of  which 

10,000  acres  are  virgin  timber  lands, 
6,000  acres  partly  cut-over  timber  lands, 
4,100  acres  open  lands. 

According  to  detail  estimates  made  by  our  own  timber 
estimator,  Mr.  W.  E.  Straight,  a  well-known  and  compe- 
tent timber  estimator  of  twenty  years'  experience,  these 
lands  will  cut  tne  following  amounts  of  timber: 

White,  Red  and  Chestnut  Oak 24,850,000  feet 

White    Pine    16,350,000  feet 

Chestnut,   Poplar  and  other  hardwood 48,190,000  feet 

Log   scale    89,390,000  feet 

These  properties  are  exceptionally  located,  being  on  the 
main  line  of  the  Norfolk  &  Western  Railroad,  only  160 
miles  from"  Baltimore  and  the  Central  Eastern  markets. 
The  majority  of  mills  shipping  into  this  market  are  from 
400  to  600  miles  distant. 

According  to  the  audit  of  the  books  of  the  O.  D.  Mc- 
Henry Lumber  Company  as  of  June  30,  1910,  made  by  Mar- 
wick,  Mitchell  &  Company,  chartered  accountants,  the  O. 
D.  McHenry  Lumber  Company  at  the  present  time  is  mak- 
ing an  average  net  profit  of  $7.78  per  thousand  feet.  This 
is  on  a  basis  of  OVER  SEVEN  TIMES  THE  MAXIMUM 
INTEREST  CHARGE  ON  THIS  ISSUE,  after  deducting 
the  Redemption  Fund  requirement  of  $3.00  per  thousand 
feet. 

MILL  PROPERTIES. 

The  mortgage  is  also  a  first  lien  on  a  modern  band  mill 
with  a  daily  capacity  of  50,000  feet,  well  located  and  sub- 
stantially built,  all  timbers  and  line  shafts  resting  on  con- 
crete foundations.  The  mortgage  also  covers  five  miles  of 
railroad  connecting  the  company's  timber  with  the  mill. 


BOND   CIRCULARS  437 

VALUE  OF  PROPERTIES. 

We   appraise   the   market   value   of   this   timber   at 

$3.50  per  thousand   feet,  or $312,865 

We  appraise  the  market  value  of  the  railroad  and 

mill  properties  at 75,000 

A  total  valuation  of  all   property  covered  by  this- 

mortgage   of    $387,865 

Or  more  than  two  and  one-half  times  amount  of  this 
bond  issue. 

The  company  takes  no  account  in  their  financial  state- 
ment of  the  20,100  acres  of  land  owned  in  fee,  which  is 
estimated  to  be  worth  an  average  of  over  $5.00  per  acre,  or 
$100,500.  Botetourt  County,  we  are  informed,  is  a  well 
known  apple  producing  county. 

REDEMPTION  FUND. 

This  mortgage  requires  a  deposit  of  $3.00  per  thousand 
feet  every  thirty  days,  log  scale,  for  all  timber  cut,  based 
upon  estimates  filed  with  the  Trustee.  Provisions  of  the 
mortgage  covering  this  point  are  rigidly  and  carefully 
drawn.  This  deposit  applies  to  the  payment  of  the  prin- 
cipal of  the  bonds  only,  and  will  operate  to  retire  this  en- 
tire bond  issue  before  cutting  60  per  cent  of  the  timber 
covered  by  the  mortgage.  Should  the  amount  deposited 
under  this  redemption  fund  exceed  the  amount  maturing 
in  any  year,  the  Trustee  is  required  to  repurchase  or  call 
for  redemption,  at  a  premium  of  103  and  accrued  interest, 
bonds  of  an  amount  suflScient  to  exhaust  the  surplus.  In- 
terest on  the  bonds  is  payable  out  of  the  earnings  of  the 
company. 

CONDENSED  BALANCE   SHEET  AS   OF  JUNE   30,   1910. 

Compiled  by  Marwick,  Mitchell  &  Co., 

Chartered  Accountants. 

ASSETS. 

Timber  lands  owned  in  fee  simple  (19,800  acres), 

logging  and  mill  property,  equipment,  etc.  .$297,332.82 

Inventories,  accounts  and  notes  receivable 28,531.41 

Cash  at  bankers   70,011.97 


Total  $395,876.20 


438  TIMBER  BONDS 

LIABILITIES. 

Capital    stock    authorized.    $200,000.00;     whereof 

issued   $174,000.00 

First  mortgage   6   per  cent  gold   bonds 150,000.00 

Current  liabilities — notes,  accounts,  etc 60,362.28 

Surplus    11,513.92 

Total   $395,876.20 

New  York,  August  2,  1910. 
We  have  examined  the  account  of  the  O.  D.  McHenry 
Lumber  Company,  Inc.,  as  at  June  30,  1910,  and  we  cer- 
tify that,  in  our  opinion,  the  foregoing  Balance  Sheet  pre- 
sents a  full  and  fair  statement  of  the  Company's  financial 
position  on  that  date  as  revealed  by  its  books. 

MARWICK,  MITCHELL  &  CO., 

Chartered  Accountants. 

PURPOSE  OF  BOND  ISSUE. 

This  issue  was  made  for  the  express  purpose  of  retiring 
all  outstanding  indebtedness  of  the  O.  D.  McHenry  Lumber 
Company,  other  than  current  indebtedness,  and  will  leave 
the  Company  with  about  $70,000  free  working  capital. 

The  total  issue  is  $200,000;  the  present  issue  is  limited 
to  $150,000;  the  remaining  $50,000  may  be  issued  only  in 
part  payment  for  standing  merchantable  timber  Ideated 
near  or  adjacent  to  the  timber  now  owned  by  the  company 
at  the  rate  of  $1.00  per  thousand  feet,  titles  to  which  are 
to  be  approved  by  our  Counsel  and  based  on  estimates  to 
be  made  in  detail  and  certified  to  by  our  cruisers  prior  to 
the  issuance  and  certification  of  such  additional  bonds. 

GUARANTEE. 

These  bonds  are  unconditionally  guaranteed,  principal 
and  interest,  by  written  endorsement  on  each  bond  by  Mr. 
O.  D.  McHenry  and  Mr.  I.  W.  Edgar,  who  are  recognized 
as  thoroughly  reliable  and  experienced  hardwood  lumber 
manufacturers. 

PERSONNEL. 

Mr.  0.  D.  McHenry,  President,  has  been  a  successful 
and  conservative  hardwood  operator  in  Pennsylvania  for 
over  twenty  years. 

Mr.  I.  W.  Edgar,  Secretary  and  Treasurer,  has  been  as- 
sociated with  Mr.  O.  D.  McHenry  for  several  years  past. 

The  Hon.  John  G.  McHenry,  Vice-President  and  a  large 
stockholder  of  the  O.  D.  McHenry  Lumber  Co.,  is  a  resident 
of  Benton,  Pennsylvania,  and  a  congressmen  from  the  dis- 


BOND  CIRCULARS  439 

trict.     Mr.  McHenry  is  also  a  director  in  numerous  banks 
and  trust  companies. 

FIRE  HAZARD. 

Virgin  timber  located  in  the  southern  states  is  abso- 
lutely free  from  devastating  fires.  This  statement  is  mere- 
ly a  matter  of  record  and  will  be  verified  by  lumbermen 
and  others  familiar  with  southern  timber.  In  this  respect 
it  differs  entirely  from  northern  stumpage. 

Any  serious  damage  by  fire  is  impossible,  because  there 
is  no  undergrowth  in  these  forests  to  hold  or  carry  a  dam- 
aging fire  and  trees  are  long-bodied  and  free  from  limbs 
from  twenty-five  or  thirty  feet  above  the  ground.  This  is 
one  of  the  most  important  facts  in  connection  with  this 
security. 

TITLES    AND   MORTGAGES. 

The  titles  to  the  land  and  timber  covered  by  this  mort- 
gage have  been  examined  and  certified  to  by  our  counsel, 
Adams  &  Candee,  of  Chicago,  under  whose  legal  direction 
the  bonds  and  mortgage  were  prepared. 

DATES  OP  PAYMENT. 

These  bonds  are  issued  in  denominations  of  $1,000  and 
$500  each,  and  are  due  and  payable  each  six  months  from 
September  1,  1910,  to  September  1,  1916  (see  first  page). 


Price  of  bonds,  for  long  or  short  time,  par  and  accrued 
interest,  yielding  six  per  cent. 


The  above  statements  are  based  on  information  and 
data  believed  by  us  to  be  trustworthy  and  reliable,  and 
while  not  guaranteed  by  us,  have  been  accepted  and  acted 
upon  by  us  in  the  purchase  and  appraisal  of  the  bonds  and 
the  property  securing  the  same. 

CLARK  L.  POOLE  &  CO., 
Bankers, 
,     Commercial   National   Bank   Bldg,   Chicago. 

EXHIBIT  NO.  20. 

McCOY  &  COMPANY, 

105  Soutlt  La  Salle  St., 

CHICAGO. 

We  offer  at  par  and  accrued  interest,  subject  to  prior  sale: 

$320,000  Six  Per  Cent  First  Mortgage  Gold  Bonds  of 

the 

KRAUSE  &  MANAGAN  LUMBER  CO.,  LTD., 
Westlake,  Louisiana. 


440  TIMBER  BONDS 

Principal  and  interest  guaranteed  by  R.  Krause,  Lake 
Charles,  Louisiana;  Wm.  H.  Managan,  Westlake,  Louis- 
iana. 


Principal  and  semi-annual  interest  payable  at  Interstate 
Trust  &  Banking  Company,  New  Orleans,  Trustee,  or 
Continental  National  Bank,  Chicago. 


Dated  September  1.  1908.  Coupon  Bonds,  $1,000  each,  pay- 
able $20,000  semi-annually  from  March  1.  1910,  to  Sep- 
tember 1,  1917,  inclusive. 
THESE    BONDS    ARE    SECURED    BY    FIRST    MORT- 
GAGE to  the  Interstate  Trust  &  Banking  Co..  of  New  Or- 
leans, Trustee,   upon  18,477   acres  of  compact,   well-located 
virgin  timber  lands  in  Calcasieu  Parish.  Louisiana,  owned 
in  fee,  estimated  to  bear  221,930.000  feet  of  merchantable 
long  leaf  and  short  leaf  yellow  pine  timber,  besides  a  con- 
siderably quantity  of  hard  woods.     The  mortgage  is  also  a 
first  lien  upon  the  saw  mill  and  plant  located  at  Westlake, 
Louisiana.    The  mortgage  requires  that  the  mill  and  equip- 
ment shall  be  fully   insured   for  the  benefit   of  the  bond- 
holders. 

AMOUNT  AND  VALUE  OF  TIMBER. 

Careful  detailed  estimates  of  the  timber  have  been 
made  by  Messrs.  Lemieux  Brothers  &  Co.,  of  New  Or- 
leans. Louisiana,  a  copy  of  whose  report  we  will  furnish 
on  application  and  from  which  we  quote  as  follows: 

Long  Leaf  Yellow  Pine.  10  inches  up 211,110,000  feet 

Short  Leaf  Yellow  Pine.  10  inches  up 6,815,000  feet 

Yellow  Pine,  8  inches  to   10  inches 4.005,000  feet 

Hardwood    1,135,000  feet 

Total     223,065,000  feet 

Yellow  pine  timber  of  the  character  covered  by  this 
mortgage,  may  be  conservatively  appraised  at  $3.00  to  $4.00 
per  thousand  feet.  These  bonds  are  issued  upon  a  basis  of 
$1.50  per  thousand  feet  of  merchantable  yellow  pine  timber, 
hence  the  value  of  the  pine  timber  alone  is  more  than  twice 
the  amount  of  the  bond  issue,  not  including  the  value  of 
other  timber,  the  mill  and  plant  at  Westlake,  and  the  per- 
sonal guarantee  of  payment  of  Mr.  R.  Krause  and  Mr.  Wm. 
H.  Managan. 

PAYMENT  OF  BONDS  IS  GUARANTEED  uucondition- 


BOND  CIRCULARS  441 

ally,  both  as  to  principal  and  interest,  by  endorsement  on 
each  bond  by  Messrs.  R.  Krause  and  Wm.  H.  Managan. 

EARNINGS. 

The  Company's  net  earnings  for  the  past  ten  years  have 
averaged  in  excess  of  $75,000  per  annum,  after  charging  off 

the  stumpage,  as  shown  by  the  following  statement  taken 
from  their  books: 

Year.                    Sales.  Shipments.             Profits. 

1898 $278,448.17  26,181,370  feet         $74,813.01 

1899 271,629.85  24,254,649  feet          71,805.62 

1900 250,733.54  19,347,432  feet          85,197.23 

1901 291,183.39  22,429,098  feet           94,804.03 

1902 261,880.74  18,661,796  feet            87,214.05 

1903 274,843.89  20,519,051  feet           89,929.03 

1904 244,434.12  18,868,472  feet           49,343.40 

1905 298,991.70  20,591,134  feet           72,495.41 

1906 231,702.21  13,198,523  feet           81,404.13 

1907 260,306.72  14,378,113  feet           50,098.19 

SINKING  FUND. 

The  mortgage,  under  careful  restrictions,  requires  the 
deposit  with  the  Trustee,  in  advance,  of  $3.00  for  each  one 
thousand  feet  of  timber  cut.  This  deposit  must  be  made 
to  cover  the  amount  of  timber  found  on  each  forty  acres, 
according  to  the  estimates  of  Lemieux  Brothers  &  Co.,  be- 
fore such  timber  is  cut.  It  is  the  intention  not  to  cut  any 
of  the  timber  securing  the  bonds  for  five  or  six  years,  but 
to  supply  the  mill  with  other  timber  owned  by  the  Com- 
pany, and  not  covered  by  the  mortgage. 

TITLES  AND  LEGALITY. 

The  titles  to  the  lands  covered  by  the  mortgage  have 
been  examined  and  approved  by  Messrs.  Pujo,  Moss  & 
Sugar,  Lake  Charles,  Louisiana;  Messrs.  Howe,  Fenner, 
Spencer  &  Cocke,  of  New  Orleans,  and  Mr.  Samuel  Adams, 
of  Chicago,  and  the  legality  of  the  bonds,  mortgage  and 
guarantee  have  been  approved  by  Messrs.  Howe,  Fenner, 
Spencer  &  Cocke  and  Mr.  Samuel  Adams.  Copies  of  these 
opinions  will  be  furnished  upon  request. 

FIRE   HAZARD. 

Timber  located  in  the  Southern  States  has  never  been 
destroyed  by  fire.  Absence  of  undergrowth  and  the  height 
of  the  trees  renders  any  serious  fire  damage  impossible. 


442  TIMBER  BONDS 

MATURITIES. 

$20,000  due  March  1,1910     $20,000  due  March  1,1914 

20,000  due  September  1, 1910      20,000  due  September  1, 1914 
20,000  due  March  1,1911       20,000  due  March  1,1915 

20,000  due  September  1, 1911      20,000  due  September  1, 1915 
20,000  due  March  1,1912       20,000  due  March  1,1916 

20,000  due  September  1, 1912      20,000  due  September  1, 1916 
20,000  due  March  1,1913       20,000  due  March  1,1917 

20,000  due  September  1, 1913      20,000  due  September  1, 1917 
Any  or  all  of  the  bonds  may  be  redeemed  on  Septem- 
ber 1st,  1911,  or  on  any  Interest  payment  date  thereafter, 
at  a  premium  of  2  per  cent  and  accrued  interest,  upon  sixty 
days'  notice. 

PRICE  FOR  ANY  MATURITY,  PAR  AND  ACCRUED 

INTEREST. 
All  bonds  offered  by  us  are  subject  to  sale,  change  of 
price  or  withdrawal.  We  use  our  best  endeavors  to  care- 
fully examine  the  details  connected  with  the  bonds  offered, 
and  while  we  do  not  guarantee  information  and  statements 
in  our  letters  and  circulars  concerning  securities,  they  are 
the  expression  of  our  belief,  or  are  statements  that  have 
been  made  to  us  from  what  we  consider  reliable  sources 
and  upon  which  we  have  acted.  We  can  furnish  the  writ- 
ten opinion  of  our  attorney  on  each  issue.  Orders  for 
bonds  may  be  telegraphed  at  our  expense.  Bonds  delivered 
to  purchaser,  express  prepaid,  payable  in  New  York  or  Chi- 
cago exchange. 

McCOY  &  COMPANY, 
105  S.  LaSalle  St.,  Chicago. 

EXHIBIT  NO.  21. 

Circular  No.  711 — August,  1910. 

PEABODY,   HOUGHTELING   &   CO., 

105  South  La  Salle  Street, 
CHICAGO. 

Established  1865. 

Cable  Address:     "Hought,"  Chicago.     Codes  Used:     Lie- 
ber  and  A.  B.  C.  5th  Edition. 

$200,000  First  Mortgage  6  Per  Cent  Serial  Gold  Bonds  of  thi 

SOUTH  ALABAMA  LUMBER  COMPANY. 
Dated  August  1st,  1910.     Payable  in  series  as  below.    Re- 


BOND   CIRCULARS  443 

deemable  in  the  reverse  of  their  numerical  order  on 
August  1st,  1911.  or  on  Interest  Dates  thereafter  at 
102%  and  Interest.  Coupon  Bonds  of  $500  and  $1,000 
demominations,  with  privilege  of  registration  as  to 
principal.  Principal  and  Semi-Annual  Interest  payable 
at  the  office  of  Peabody,  Houghteling  &  Co.,  Chicago. 
First  Trust  &  Savings  Bank,  Chicago,  and  Augustus  S. 
Peabody,  Trustees. 

MATURITIES. 

Date    Maturing. 


Amount. 

Term. 

$  6,000 

1  year 

6,500 

IVo  years 

12,500 

2  years 

12,500 

214  years 

12,500 

3  years 

12,500 

ZV2  years 

12,500 

4  years 

12,500 

414  years 

12,500 

5   years 

25,000 

5^->  years 

25,000 

6  years 

25,000 

6I2  years 

25,000 

7  years 

August 

1,1911 

February 

1,1912 

August 

1,1912 

February 

1,1913 

August 

1, 1913 

February 

1.1914 

August 

1,1914 

February 

1,1915 

August 

1,  1915 

February 

1.1916 

August 

1,1916 

February 

1.1917 

August 

1,1917 

These  bonds,  which  are  issued  for  the  purpose  of  re- 
tiring the  floating  indebtedness  of  the  Company  and  for 
additional  working  capital,  are  secured  by  a  CLOSED  First 
Mortgage  on  approximately  10,000  acres  of  land,  and  ap- 
proximately 122,740,000  feet  of  timber. 

VALUATION. 
Based   upon   an   examination   of  the   Company's   timber 
lands  made  in  our  behalf  by  the  well  known  expert,  Mr. 
•J.  P.  Brayton,  we  value  the  security  behind  these  bonds  as 
follows: 

Land  and  Timber $638,680.00 

In  addition  to  which  the  Company  has  ample  working 
capital,  and  owns  a  valuable  saw  mill,  logging  equipment 
and  railroad,  upon  which  we  have  placed  no  specific  valua- 
tion. 

SINKING   FUND. 
Under  the  terms  of  the  Mortgage,  the  Company  agrees 
to  pay  into  the  First  Trust  &  Savings  Bank.  Chicago,  on  or 
before  the  15th  day  of  every  month,  subject  to  the  Trustees' 


444  TIMBER  BONDS 

order,  a  sinking  fund  of  $5.00  per  thousand  feet  on  all  tim- 
ber cut  from  the  land,  under  the  Mortgage,  during  the  pre- 
ceding calendar  month. 

Any  surplus  left  in  the  sinking  fund  at  the  end  of  any 
year  may  be  used  to  retire  the  bonds  in  the  reverse  of 
their  numerical  order  at  102 1/.  and  interest. 

This  sinking  fund  is  sufficient  to  pay  off  the  entire  prin- 
cipal of  these  bonds  from  the  exhaustion  of  less  than  one- 
third  of  the  Company's  timber. 

SECURITY. 

The  security  behind  these  bonds  consists  of  timber  lands 
in  Mobile  County,  Alabama,  about  twenty  miles  in  a  direct 
line  from  the  city  of  Mobile.    These  lands  comprise: 

10,000  acres  of  land  and  timber  owned  in  fee  sim- 
ple. 
1,802  acres  of  timber  owned  in  fee  simple. 


Total 11,802  acres. 

These  lands  contain,  according  to  the  estimate  of  Mr. 
J.  P.  Brayton: 

72,520,000  feet  of  Pine. 
10,030,000  feet  of  Cypress. 
40,190,000  feet  of  Hardwood. 


Total.  ..122,740,000  feet  of  merchantable  timber. 

The  timber  lands  are,  for  the  most  part,  level  and  the 
timber  is  very  good. 

These  bonds  are  also  secured  by  the  Company's  plant, 
which  includes  a  Band  Saw  Mill,  Logging  Railway  and 
Logging  Outfit,  in  excellent  condition  and  with  a  capacity 
of  45,000  feet  per  day. 

OPERATION. 

Because  of  the  close  proximity  of  the  timber  to  the  Mo- 
bile market,  with  railroad  and  water  facilities,  the  ideal 
character  of  the  land  for  economic  logging  and  the  quality 
of  the  timber,  the  Company's  operations  should  be  exceed- 
ingly profitable. 

In  his  report  of  June  3rd,  1910,  Mr.  J.  P.  Brayton  esti- 
mates the  cost  of  manufacture  from  the  stump  to  the  car, 
including  depreciation  and  management,  to  be  about  $7.50 
per  thousand  feet  for  the  Yellow  Pine,  and  the  cost  of 
lumbering  the  Cypress,  Gum  and  other  Hardwood  and  man- 
ufacturing the  same  into  lumber,  including  depreciation 
and  management,  at  $10  per  thousand  feet.  He  considers 
$16  per  thousand  feet  a  fair  average  price  for  the  Pine,  $25 


BOND   CIRCULARS  445 

per  thousand  feet  for  the  Cypress  and  $14  per  thousand  feet 
for   the    Gum    and    other    Hardwood.     On    this   basis,    the 
stumpage  of  122,740,000  feet  behind  the  total  bond  issue  of 
$200,000  would  produce  the  following  results: 
72,520.000  feet  of  Pine  at  an  average 

selling  price  of  $16  f.  o. 

b.    cars $1,160,320 

Less  cost  of  logging,  manu- 
facturing and  loading  on 
cars,    $7.50 543,900         $616,420 

10,030,000  feet  of  Cypress  at  an  aver- 
age selling  price  of  $25  f. 

o.  b.  cars $    250,750 

Less  cost  of  logging,  manu- 
facturing and  loading  on 
cars.  $10 100,300  150,450 

40,190,000  feet  of  Hardwood  at  an  av- 
erage selling  price  of  $14 
f.  0.  b.  cars   $    562.660 

Less  cost  of  logging,  manu- 
facturing and  loading  on 
cars,  $10 401,900  160,760 

Net  amount  available  for  the  protec- 
tion of  principal  and  interest  of 
these  bonds   $927,630 

Total  amount  of  principal  and  inter- 
est of  these  bonds $262,625 

MANAGEMENT  AND  OWNERSHIP. 

The  stockholders  of  the  South  Alabama  Lumber  Com- 
pany are  men  of  substantial  means  and  large  experience, 
and  the  management  of  the  Company  and  its  affairs  are  in 
conservative  and  thoroughly  practical  hands.  The  stock- 
holders have  an  actual  cash  investment  of  over  $300,000 
behind  these  bonds. 

GUARANTEE. 

These  bonds  are  unconditionally  guaranteed  jointly  and 
severally  both  as  to  principal  and  interest  by  Mr.  H.  H. 
Wheless  of  Shreveport,  Louisiana,  and  Mr.  J.  M.  Patterson, 
of  Mobile,  Alabama,  who  are  men  of  excellent  standing  in 
their  community,  with  a  reputation  for  responsibility,  in- 
tegrity  and  absolute  promptness  in   meeting  their  obliga- 


446  TIMBER  BONDS 

tions.     Their  combined  net  worth,  outside  of  their  interest 
in  this  Company,  is  in  excess  of  $650,000. 

We  have  investigated  these  properties  thoroughly.  The 
timber  lands  have  been  examined  and  reported  on  in  de- 
tail by  Mr.  J.  P.  Brayton,  one  of  the  most  experienced  and 
best  known  experts  in  the  country,  as  well  as  by  our  own 
timber  expert.  The  .Company's  books  have  been  audited 
by  Messrs.  Price,  Waterhouse  &  Company,  and  the  titles 
to  the  Company's  property  and  all  legal  matters  pertaining 
to  this  issue  have  been  approved  by  Messrs.  Stevens  & 
Lyons  of  Mobile,  Alabama. 


We  recommend  these  bonds  as  a  safe  investment  for  the 
following  reasons: 

First:  The  value  of  the  security  is  over  three  times 
the  amount  of  the  issue. 

Second:  The  stockholders  have  an  actual  cash  invest- 
ment of  over  $300,000  behind  the  bonds. 

Third:  The  timber  securing  these  bonds  is  of  unusually 
fine  quality  and  so  situated  that  it  can  be  operated  at  a 
profit  even  under  the  most  unfavorable  market  conditions. 

Fourth:  The  stockholders  of  the  Company  are  finan- 
cially strong  and  are  able  to  protect  their  investment,  and 
the  management  is  experienced,  successful  and  thoroughly 
practical. 

Fifth:  The  bonds  are  guaranteed  by  individuals  having 
a  net  worth  OUTSIDE  OF  THIS  PROPERTY  of  $650,000, 
over  three  times  the  amount  of  the  bonds. 

The  bonds  will  be  ready  for  delivery  about  September 
1st  and  will  be  delivered  at  any  bank  desired,  express  pre- 
paid. 

Price,  par  and  accrued  interest. 

Telegraphic  orders  may  be  sent  at  our  expense. 

PEABODY,    HOUGHTELING    &    CO., 
105  S.  LaSalle  St.,  Chicago. 


EXHIBIT  NO.  22. 

LYON,  GARY   &   COMPANY, 

LUMBERMEN    AND    BANKERS. 

CHICAGO. 

$200,000.00   SOUTHERN   TIMBER   COMPANY 

Six  Per  Cent  First  Mortgage  Serial  Gold  Bonds. 

Dated  Nov.  17,  1910.    Maturing  semi-annually.  May  15,  1911, 

to  Nov.  15,  1913. 


BOND   CIRCULARS  447 

Redeemable  at  103  and  interest,  in  whole  or  in   part,   on 

any  interest  day,  on  ninety  days'  notice. 
Principal  and  interest  payable  in  Chicago  on  May  15th  and 

Nov.  15th. 
Coupon   Bonds   of   $1,000   each;    may   be   registered   as   to 

principal.      Union    Trust    Company    of    Chicago   and 

John   K.   Lyon,   Trustees. 

MATURITIES. 

$33,000 May  15,  1911       33,000 Nov.  15,  1912 

33,000 Nov.  15,  1911        33,000 May  15,  1913 

33,000 May  15,  1912         35,000 Nov.  15,  1913 

Principal  and  interest  guaranteed  by  endorsement  by 
Ernest  V.  Dunlevie  of  Buffalo,  New  York. 

The  security  for  the  bonds  may  be  summarized  as  fol- 
lows: 

1.  First  Mortgage  lien  on  9,199  acres  of  land  owned  in 
fee  and  on  the  timber  on  11.002  acres  held  under  leases, 
none  of  which  expires  until  subsequent  to  the  maturity  of 
all  of  the  bonds  of  this  issue,  all  located  in  Liberty  County. 
Georgia. 

2.  Upon  the  20,201  acres  there  are  140,000,000  feet  of 
standing  and  living  yellow  pine  timber. 

3.  The  timber  is  conservatively  valued  at  $3.50  per 
thousand  feet  or  a  total  valuation  of  approximately  $500,- 
000.00  exclusive  of  the  land. 

4.  The  Mortgage  also  covers  a  railroad  and  logging 
equipment  which  has  already  cost  in  excess  of  $90,000.00. 

5.  As  additional  security  the  Timber  Company  has  as- 
signed its  contract  with  the  Byers-Allen  Lumber  Co.  of  Al- 
lenhurst,  Georgia,  by  the  terms  of  which  the  said  Lumber 
Company  agrees  to  take  from  the  Timber  Company  a  mini- 
mum of  12,000,000  feet  per  annum  and  pay  therefor  when 
delivered  at  its  mills  $8.50  per  thousand. 

6.  The  performance  of  this  contract  by  the  Byers-Allen 
Lumber  Co.  is  guaranteed  by  its  President,  Mr.  J.  Henry 
Cochran  of  Williamsport,  Penn.,  a  lumberman  reputed  to 
be  worth  many  times  the  amount  of  this  bond  issue. 

7.  From  the  statements  of  the  Timber  Company  it  is 
shown  that  logs  are  now  being  delivered  at  the  mill  of  the 
Byers-Allen  Lumber  Co.  at  Allenhurst  at  a  cost  of  less  than 
$3.00  per  thousand,  which  would  leave  a  margin  for  the 
Timber  Company  in  excess  of  $5.50  per  thousand  feet. 

8.  The  Southern  Timber  Company's  operations  are  un- 
der the  personal  charge  of  Mr.  Ernest  V.  Dunlevie,  the 
owner,  a  successful  and  experienced  lumberman. 


448  TIMBER  BONDS 

9.  The  loan  is  at  the  rate  of  $1.40  per  thousand  on  the 
timber. 

10.  Under  the  trust  deed  the  Timber  Company  is  re- 
quired to  pay  to  the  trustee  $5.00  per  thousand  feet  for  tim- 
ber desired  to  be  cut;  from  this  provision  it  will  be  seen 
that  the  whole  loan  will  be  paid  before  one-third  of  the 
timber  pleged  is  cut. 

11.  The  guarantor,  Mr.  E.  V.  Dunlevie  is  reputed  to  be 
worth,  outside  of  this  property,  considerably  more  than  the 
total  amount  of  this  loan. 

12.  Frequent  inspection  of  the  property  is  provided  for 
at  the  expense  of  the  borrower. 

13.  It  is  well  known  that  yellow  pine  timber  of  the 
South  has  not  suffered  from  fire  hazard. 

14.  The  valuations,  titles  and  legal  matters  have  been 
passed  on  by  competent  parties;  the  timber  and  its  value 
by  our  own  cruisers  and  the  titles  and  legal  matters  by  W. 
W.  Gurley,  of  Chicago,  and  E.  E.  Barthell,  of  Nashville, 
Tenn. 

15.  The  whole  property  lies  within  thirty-five  miles  of 
Savannah,  Ga.,  and  the  sea  coast,  and  has  two  trunk  lines 
adjacent,  one  passing  on  each  side  and  within  a  few  miles 
of  the  property. 

Map  showing  the  exact  location,  copy  of  the  Mortgage  or 
Deed  of  Trust,  and  detailed  statement  of  the  cruise  may  be 
had  on  request. 

All  statements  made  in  this  circular  are  based  upon  in- 
formation which  we  regard  as  reliable  and  upon  which  we 
acted  in  the  purchase  and  valuation  of  the  securities  of- 
fered;  such  offerings  being  made  subject  to  prior  sale. 

LYON,   GARY  &  COMPANY, 

204  Dearborn  St., 

Chicago. 


CHAPTER  XIII. 

SINKING  FUND. 

Most  bond  dealers  at  present  have  no  stand- 
ard method  of  arriving  at  the  charge  per  thou- 
sand feet  that  must  go  to  the  sinking  fund  to 
retire  the  semi-annual  serials.  They  usually 
drive  the  hardest  possible  bargain  and  charge 
the  timberman  all  the  traffic  will  bear.  This 
method  is  unsound  and  entirely  un-scientific. 
There  are  some  issues  outstanding,  carrying 
such  a  heavy  sinking  fund  charge  that  unless 
the  market  for  lumber  improves  they  will  have 
to  default  in  that  particular  condition. 

The  lumber  operator  has  no  right  to  draw 
big  dividends  out  of  the  business  while  his 
debts  are  heavy.  Neither  should  the  bond 
house  break  him  by  forcing  the  borrower  under 
a  trust  deed  to  pay  excessive  amounts  to  the 
sinking  fund.  The  stumpage  owner  goes  to 
the  bond  house  to  be  financed,  to  be  relieved 
of  pressing  debts  and  liabilities.  He  is  not 
versed  in  the  science  of  money  and  to  a  certain 
extent  places  himself  at  the  mercy  of  the  bond 
buyer.  If  the  bond  buyer  understands  lumber- 
ing and  logging  the  timberman  is  safe  in  doing 
this.  If  the  bond  buyer  weighs  down  the  oper- 
ator with  excessive  sinking  fund  charges  the 
timberman  is  worse  off  than  he  was  prior  to 
bonding  his  property.    Before  floating  the  bond 

449 


450  TIMBER  BONDS 

issue,  he  could,  at  a  crisis,  sell  a  piece  of  tim- 
ber or  make  some  other  turn.  After  floating 
a  bond  issue  the  entire  property  is  mortgaged 
and  he  is  helpless  unless  the  bond  house  has 
provided  him  with  enough  money,  under  a  lib- 
eral mortgage,  to  permit  him  to  operate  with 
safety  and  economy.  The  bond  house  that 
makes  the  sinking  fund  charges  all  the  traffic 
will  bear  is  not  financing  the  borrower,  but  is 
starting  him  on  the  high  road  to  default,  fore- 
closure and  bankruptcy. 

The  soundest  method  of  figuring  sinking 
funds  now  employed  is  that  used  by  a  large 
house  that  is  fully  conversant  with  logging  and 
milling  operations.  This  house  knows  the 
cost  of  each  kind  of  lumber  on  cars  in  every 
locality  and  is  conversant  with  the  markets  and 
the  margin  the  operator  has  between  cost  on 
cars  and  selling  price.  They  make  allowances 
for  all  contingencies  and  base  their  sinking 
fund  charges  accordingly.  This  system  is  safe 
for  all  concerned  when  used  by  the  above  house, 
but  in  the  hands  of  a  bond  house  that  is  not 
fully  in  touch  with  the  various  phases  of  the 
timber  business  it  is  positively  dangerous.  The 
writer  believes  there  should  be  a  universal 
sinking  fund  rule ;  safe,  and  fair  alike  for  both 
borrower  and  lender. 

The  timberman  can  now  borrow  in  the  form 
of  a  bond  issue  from  one-third  to  one-half  the 
value  of  his  holdings.  If  his  timber  is  worth 
four  dollars  a  thousand  on  the  stump  he  can 


SINKING  FUND  451 

borrow  about  two  dollars  a  thousand.  Under 
the  present  practice  the  sinking  fund  on  this 
loan  is  any  figure  the  bond  house  estimates. 
The  proper  and  scientific  figure  to  be  paid  to 
the  sinking  fund  on  such  a  loan  is  the  value  of 
the  stumpage, —  four  dollars  per  thousand. 
This  will  pay  off  the  loan  when  half  the  timber 
is  cut.  In  like  manner  when  the  loan  is  one- 
third  the  value  of  the  timber  and  the  sinking 
fund  the  full  value  of  the  timber  the  loan  will 
be  paid  off  while  two-thirds  of  the  stumpage  is 
standing. 

The  sinking  fund  payments  up  to  the  present 
time  have  always  exceeded  the  value  of  the 
timber.  The  true  sinking  fund  is  the  value  at 
which  the  timber  is  appraised  for  the  loan  and 
on  which  the  percentage  to  be  loaned  is  based. 
This  gives  the  lender  full  protection  and  the 
timber  owner  a  fair  deal. 


CHAPTER  XIV. 

FIEE    EISK. 

As  the  chief  argument  against  the  security 
behind  a  bond  issue,  the  enemies  of  timber 
investments  advance  the  danger  from  loss  by 
forest  fire.  In  order  to  fully  understand  this 
question  it  is  necessary  to  know  there  are  four 
kinds  of  forest  fire,  a  ground  fire,  a  surface  fire, 
a  stand  fire  and  a  crown  fire. 

A  ground  fire  burns  along  the  floor  of  the 
forest,  creeping  through  its  carpet  and  creat- 
ing immense  volumes  of  thick  smoke,  which 
conveys  the  idea  to  the  observer  that  the  entire 
forest  is  burning.  These  clouds  of  smoke  get 
so  dense  that  the  sun  appears  in  the  heavens 
as  an  immense  disc  of  fire.  The  eyes  become 
inflamed  and  the  throat  and  nose  irritated.  The 
great  majority  of  forest  fires  are  in  this  class. 

The  ground  fire  is  practically  harmless,  but 
unfortunately  for  the  timber  owner,  it  does 
create  a  lot  of  smoke,  and  this  smoke  furnishes 
the  politician — ranger  and  the  newspaper 
space  writer  with  campaign  ammunition.  The 
former  for  obvious  reasons  must  have  fires  to 
cope  with.  The  larger  and  more  numerous  the 
fires  the  more  secure  the  fire  fighters  position, 
and  the  heavier  the  appropriations  both  state 
and  national.  The  space  writer  is  looking  for 
anything  that  makes  copy  and  is  glad  to  use 

452 


FIRE  RISK  453 

the  lurid  material  his  friend  the  ranger  fur- 
nishes him. 

A  surface  fire  runs  higher  up  than  the 
ground  fire.  It  burns  through  the  under- 
growth. A  surface  fire  does  little  damage  un- 
less it  spreads  and  becomes  a  stand  fire. 

A  stand  fire  is  the  really  destructive  element 
to  a  forest.  It  burns  through  the  bark  of  the 
trees  and  causes  their  death.  On  the  Pacific 
Coast,  on  the  west  side  of  the  Cascade  and 
Sierra  mountains,  fire  killed  timber  stands  in- 
definitely in  some  situations  and  makes  per- 
fect lumber.  Some  timber  owners  like  to  see 
a  fire  go  through  their  stumpage  as  it  cleans 
out  the  underbrush,  makes  the  timber  more  ac- 
cessible, the  cost  of  building  roads  very  light 
and  reduces  the  logging  expense  considerably. 

A  crown  fire  burns  in  the  crowns  of  the  trees ; 
it  is  very  rare  and  as  spectacular  as  unusual. 

The  loan  value  of  timber  is  greatly  reduced 
by  the  magnifying  of  the  fire  risk.  The  people 
who  circulate  the  overdrawn  reports  of  losses 
do  not  realize  how  seriously  they  injure  tim- 
ber owners  and  the  wrong  they  work  on  stump- 
age  prices.  There  are  sections  of  the  country 
where  it  is  almost  impossible  to  borrow  money 
on  timberland  on  account  of  the  supposed  fire 
risk  The  reports  of  fire  losses  sent  from  the 
Pacific  Coast  during  the  summer  and  fall  of 
1910  created  a  feeling  of  fear  about  that  part 
of  the  country  amongst  bankers  and  bond 
dealers. 


454  TIMBER  BONDS 

Some  of  them  will  not  handle  Pacific  Coast 
timber  bonds  on  account  of  their  belief  in  the 
truth  of  these  reports.  There  is  a  fire  risk  in 
the  Pacific  Northwest  in  timber  located  East 
of  the  Cascade  Mountains.  But  even  there, 
the  percentage  of  actual  loss  is  small.  West 
of  the  Cascades  and  in  the  Coast  Eange  the 
fire  risk  is  practically  non-existant.  In  Califor- 
nia, it  is  a  well  known  fact  that  there  is  no 
fire  risk  in  Eedwood  forests.  Eedwood  trees 
cannot  be  burned. 

In  the  Southern  pine  forests,  there  is  no 
fire  risk  in  round  timber.  There  is  a  small 
fire  risk  in  boxed  timber  if  the  ground  is  not 
raked  and  taken  care  of.  Cypress  is  positively 
immune  from  fire  and  from  that  point  of  view, 
is  truly  the  wood  eternal.  Hardwood  carries 
no  fire  risk.  The  destructive  fires  have  oc- 
curred in  the  northern  forests,  and  in  the  lake 
states.  These  forests  are  practically  cut  out 
and  do  not  come  on  the  bond  market. 

Any  person  who  wants  to  ascertain  the  ac- 
tual fire  loss  in  any  particular  section  can  do 
so  by  writing  the  timber  owners  and  operators. 
After  reading  the  press  accounts  about  losses 
running  into  millions  and  then  comparing  them 
with  the  actual  figures  the  investigator  will  re- 
alize how  much  reliance  to  place  in  the  publish- 
ed statements. 

//  the  figures  published  by  interested  parties 
during  the  last  ten  years  as  to  the  amount  of 
timber    burned   were    correct,    all   the    known 


FIRE  RISK  4S5 

stumpage  in  North  America  would  have  been 
totally  destroyed  several  times.  The  fire  risk 
is  highly  and  unjustly  exaggerated. 


CHAPTER  XV. 

LOAN  VALUE. 

Every  tract  of  timber  has  its  own  individu- 
ality, its  distinct  characteristics  and  its  specific 
value  either  as  a  going  enterprise,  a  reserve 
supply,  an  investment  or  a  speculative  holding. 

Timber  in  certain  sections  of  the  country  is 
worth  more  than  timber  in  other  sections.  The 
locations  of  different  tracts  in  the  same  section 
alter  their  value.  Certain  kinds  of  timber  are 
more  valuable  than  other  kinds.  Difference  in 
size  varies  the  value  of  the  same  kind. 

Timber  that  is  close  to  transportation  is 
more  valuable  than  remote  stumpage.  Tim- 
ber that  grows  on  good  logging  ground  is  more 
valuable  than  that  which  stands  on  rough 
ground.  Timber  tributary  to  deep  water  and 
railroads  is  more  valuable  than  that  which  has 
only  one  outlet.  Green  and  growing  timber  is 
worth  more  than  trees  that  have  reached  ma- 
turity. Trees  that  have  just  reached  maturity 
are  more  valuable  than  those  which  are  over- 
ripe. 

The  worth  of  the  land  on  which  the  timber 
stands  is  not  now  figured  by  bond  dealers  when 
estimating  the  amount  of  money  to  loan  on  a 
given  timber  property.  This  land  is  usually 
valuable  for  agricultural  purposes,  and  is  often 
very   desirable   fdr   special  uses.     The   exact 

456 


LOAN  VALUE  457 

price  of  cut  over  land  depends  on  its  location, 
the  nature  of  the  soil  and  climate,  the  uses  to 
which  the  land  is  adaptable,  the  nearness  to  a 
market  for  agricultural  and  garden  products 
and  the  industry  and  thrift  of  the  neighboring 
population.  The  land  is  surely  a  sound  asset 
and  should  be  considered. 

In  the  South  cut  over  land  may  be  used  for 
growing  sugar  cane,  corn,  cotton,  rice,  farm 
products  or  another  crop  of  timber,  depending 
on  the  climate  and  nature  of  the  soil.  The 
South  must  produce  all  the  cotton  used  in 
America  and  it  is  the  only  part  of  the  country 
where  rice  and  cane  can  be  grown.  The  value 
of  cut  over  land  in  the  South  is  enormous,  and 
must  be  borne  in  mind  by  bond  buyers.  In 
many  cases  the  land  alone  would  more  than 
pay  the  bond  issues  on  the  property  and  leave 
the  timber,  logging  equipment,  railroads  and 
mills  as  additional  security  A  southern  tim- 
ber bond  is  among  the  safest  forms  of  invest- 
ment that  can  be  found 

Humanity  must  be  fed  and  housed.  Timber 
and  cotton  are  the  great  shelter  crops  of 
America.  The  land  that  now  grows  timber  and 
when  logged  off  will  grow  cotton,  cane,  rice 
or  corn,  is  surely  the  soundest  security  in  the 
world. 

In  floating  bond  issues  at  present  the  bond 
dealer  will  loan  the  timberman  from  thirty  to 
fifty  per  cent  of  the  value  of  his  stumpage  and 
make  the  operator  include  land,  logging  equip- 


458  TIMBER  BONDS 

ment,  railroads  and  mills  in  the  mortgage  as 
further  security  This  basis  is  fair  enough  for 
some  sections  and  operations,  but  on  the  whole 
it  is  too  low.  The  timberman  who  has  a  well 
located  property,  and  whose  operations  will 
show  a  clean  record  of  profits  for  several  years 
last  past,  should  be  able  to  borrow  about  sev- 
enty-five per  cent  of  the  value  of  his  timber 
owned  in  fee  simple,  and  in  addition,  about  fifty 
per  cent  of  the  value  of  his  fixed  improvements, 
such  as  railroads  and  mills. 


CHAPTER  XVL 

TECHNICAL  TEEMS. 

In  handling  Timber  Bonds,  the  Bond  Dealer 
comes  in  close  contact  with  the  practical  Log- 
ger and  Millman,  and  unless  he  has  made  a 
specialty  of  timber  bonds,  he  is  often  at  a  loss 
to  follow  the  conversation  of  the  lumberman. 
This  inability  to  interpret  the  language  of  the 
industry  has  caused  the  failure  of  many  bond 
negotiations  for  issues  which  were  perfectly 
sound.  The  only  reason  for  the  non-production 
of  these  issues  is  the  fact  that  the  parties  on 
either  side  of  the  transaction  did  not  under- 
stand the  technical  expressions  of  the  other 
well  enough  to  feel  at  home  and  trade  with  con- 
fidence. After  a  conference  with  the  practical 
logger  or  millman,  the  bond  buyer  feels  he  is 
getting  beyond  his  depth,  and  while  the  busi- 
ness is  attractive,  he  is  afraid  to  venture  where 
he  does  not  clearly  understand  the  ground, 
when  in  reality  all  he  needs  is  a  text  book  such 
as  he  can  find  on  almost  any  other  subject  ex- 
cept timber  bonds. 

The  trade  words  and  terms  keep  cropping 
out  in  letters,  reports  and  newspaper  articles 
until  the  bond  dealer  gets  the  idea  that  the 
timber  bond  is  to  be  originated  only  by  spe- 
cialists and  brought  out  exclusively  by  the  un- 
derwriter who  makes  a  business   of  creating 

459 


460  TIMBER  BONDS 

such  issues.  The  underwriter  gives  good  serv- 
ice and  makes  it  more  than  worth  his  profit 
to  the  dealer  to  buy  through  him.  The  under- 
writer knows  stumpage  values  thoroughly, 
watches  the  lumber  markets,  knows  the  move- 
ments of  the  timber  trade,  keeps  in  close  touch 
with  the  entire  business,  and  the  timber  bond 
issues  he  others  are  always  the  choicest.  No 
bond  dealer,  however,  should  be  entirely  de- 
pendent on  the  underwriter.  He  should  know 
the  timber  situation  well  enough  to  bring  out 
his  own  timber  bond  issues  when  he  so  de- 
sires. 

In  a  recent  conversation  with  a  bond  seller 
who  disposes  of  a  round  quantity  of  timber 
bonds  each  year,  I  was  informed  that  he  never 
originated  his  own  issues  because  he  knew 
nothing  about  the  necessary  proceedings,  and 
could  find  no  book  on  the  subject.  He  told 
me  he  sent  the  timbermen,  who  came  to  him 
to  negotiate  loans,  to  the  dealers  he  bought  his 
bonds  from  and  to  whom  he  paid  a  handsome 
profit  for  their  work  of  creating  the  bonds.  I 
asked  him  why  he  did  not  buy  through  an  un- 
derwriter, and  was  surprised  to  learn  that  he 
did  not  feel  sufficiently  confident  even  to  do 
this.  He  would  rather  have  some  other  house 
buy  from  the  Underwriter  and  then  in  turn  buy 
from  it. 

Such  men  lose  business  because  they  cannot 
train  their  salesmen  thoroughly  in  the  handling 
of  this  class  of  paper,  and  are  not  able  to  talk 


TECHNICAL  TERMS  461 

convincingly  about  the  particular  issue  they 
are  offering.  The  timber  bond  is  a  very  at- 
tractive security,  pays  a  good  rate  of  inter- 
est and  is  in  great  demand,  but  competition 
gives  the  sales  to  the  man  who  can  talk  in  an 
able  manner  and  thus  satisfy  the  buyer  that 
his  is  the  most  desirable  issue  for  sale  at  the 
moment. 

There  is  nothing  more  technical  or  difficult 
about  a  timber  bond  than  about  a  railroad  bond 
or  a  hydro-electric  bond  or  an  industrial  bond. 
The  man  who  will  devote  a  little  study  to  in- 
vestigating timber  securities  will  grow  to  like 
them  better  all  the  time  and  soon  realize  they 
are  as  simple  as  any  other  bond.  Timber  bonds 
have  been  looked  on  with  distrust  by  the  loan 
officers  and  credit  departments  of  banks  and 
there  are  some  banks  that  will  not  take  them  as 
collateral.  This  is  because  the  officers  are  not 
familiar  with  these  securities  and  have  had 
no  way  of  learning  the  full  details  and  history 
of  a  timber  bond.  The  reports  and  data  they 
see  are  full  of  terms  they  do  not  understand 
and  naturally  they  avoid  the  use  of  such  paper 
as  security  for  loans  when  they  can  place  their 
money  on  collateral  they  know  thoroughly  or 
can  learn  all  about.  To  overcome  these  obsta- 
cles of  technical  terms  and  place  the  timber 
bond  in  the  high  position  it  should  occupy,  a 
chapter  of  definitions  has  been  compiled  for 
this  book. 

There  is  a  large   and  growing  market  for 


462  TIMBER  BONDS 

Timber  Bonds  amongst  wealthy  stumpage  own- 
ers, retired  loggers,  millmen  and  others  who 
have  made  their  money  in  timber  or  allied  in- 
dustries. These  men  talk  stumpage  and  lum- 
ber from  a  practical  point  of  view,  and  the  tim- 
ber bond  salesman  who  cannot  comfortably 
discuss  his  wares  in  their  language  is  not  like- 
ly to  increase  the  business  of  his  house  with 
them.  The  timber  bond  salesman  should  be 
thoroughly  familiar  with  the  every  day  terms 
and  technical  phrases  of  the  industry  and  be 
able  to  converse  freely  with  the  practical  logger 
or  millman. 

Heretofore  it  has  been  almost  impossible  for 
the  bond  salesman  to  equip  himself  with  the 
necessary  knowledge  owing  to  the  lack  of  pub- 
lished information  on  the  subject.  By  studying 
the  definitions  in  the  next  chapter  the  bond 
salesman  can  fit  himself  to  meet  any  timber 
owner,  logger  or  millman,  and  discuss  bonds, 
timber  and  operations  with  ease  and  confi- 
dence. 

The  writer  has  endeavored  to  make  these 
terms  conform  to  the  exact  language  of  the 
United  States  Bureau  of  Forestry  and  The  So- 
ciety of  American  Foresters.  Eeaders  wish- 
ing to  continue  their  investigations  along  tim- 
ber subjects  are  referred  to  bulletin  number 
sixty-one.  Bureau  of  Forestry,  which  has  been 
used  as  a  text  book  for  the  following  chapter, 
to  the  ''Historv  of  the  Lumber  Industry"  and 
''The     Curiosity     Shop"     published    by    the 


TECHNICAL  TERMS  463 

American  Lumberman,  Chicago,  ''The  Eco- 
nomics of  Forestry"  by  B.  E.  Fernow,  to  the 
works  of  George  B.  Sudworth,  Dendrologist 
of  the  Bureau   of   Forestry,   Washington,   D. 

C,  the  works  of  Overton  W.  Price,  U.  S.  For- 
est Service,  Washington,  D.  C,  and  to  the  bul- 
letins of  the  Bureau  of  Forestry,  Washington, 

D.  C. 


CHAPTER  XVII. 

WOEDS   AND   PHRASES, 

Absolute  Forest  Land.     Land  fit  only  for  forest  growth. 

Accident  Yield.  Trees  which  are  cut  on  account  of  ac- 
cident, as,  for  example,  damage  by  wind,  snow,  insects 
or   fire. 

Accretion.  Increase  in  diameter  or  height;  distinguished 
from  increment,  increase  in  volume. 

Accretion  Borer.  An  instrument  for  determining  the 
growth  in  diameter  of  standing  trees.  It  consists  of  a 
hollow  auger,  which  when  bored  into  a  tree,  extracts 
a  section  showing  the  annual  rings. 

Accretion  Thinning.  A  thinning  made  specifically  to  in- 
crease the  rate  of  growth  in  diameter  of  the  trees 
which   are   left   standing.      See   thinning. 

Actual  Merchantable  Length.     See  used  length. 

Actual  Merchantable  Volume.      See  used  volume. 

Advance  Growth.  Young  trees  which  have  sprung  up 
in  accidental  openings  in  the  forest,  or  under  the 
forest  cover  before  reproduction  cuttings  are  begun. 
See  volunteer  growth. 

After  Growth.  Young  trees  which  have  sprung  up  as 
the  result  of  reproduction  cuttings. 

Age  Class.  All  trees  in  a  stand  whose  ages  are  within 
a   given   limit. 

Alder  Grab.  The  stem  of  an  alder,  or  other  small  tree, 
which  is  bent  over  and  plugged  into  a  hole  bored  In 
a  boom  stick,  or  secured  in  some  other  way,  to  hold 
a  boom  of  logs  inshore. 

Alligator.  1.  A  boat  used  in  handling  floating  logs. 
It  can  be  moved  overland  from  one  body  of  water  to 
another  by  its  own  power,  usually  applied  through 
drum  and  cable.  2.  A  device,  often  made  from  the 
fork  of  a  tree,  on  which  the  front  end  of  a  log  is 
placed  to  facilitate  skidding  on  swampy  ground. 

Anchor  Line.  A  line  attached  to  a  small  buoy  and  to 
one  fluke  of  an  anchor  used  in  towing  a  raft  of  logs. 
It  is  employed  to  free  the  anchor  when  fast  to  rocks 
or  snags. 

Annual  Ring.  The  layer  of  wood  produced  by  the  di- 
ameter growth  of  a  tree  in  one  year,  as  seen  on  a 
cross  section.     See  false  ring. 

Apron.  1.  A  platform  projecting  down  stream  from 
the  sluiceway  of  a  dam  to  launch  well  into  the  stream 

464 


w. : 


WORDS  AND  PHRASES  465 

logs  which  pass  through  the  sluiceway.  2.  A  plat- 
form built  of  timbers  at  the  foot  of  a  slide,  which 
guides  in  the  desired  direction  logs  leaving  the  slide. 

Ark.     See  Wanigan. 

Aspect.  The  direction  toward  which  a  slope  faces.  The 
eight  main  points  of  the  compass,  N.,  N.E.,  E.,  S.E., 
S.,  S.W.,  W.,  N.W.,  are  distinguished  in  forest  descrip- 
tion. 

Back  Fire.  A  fire  started  purposely  some  distance  ahead 
of  a  fire  which  is  to  be  fought.  The  back  fire  is  in- 
tended to  burn  only  against  the  wind,  so  that  when  the 
two  fires  meet,  both  must  go  out  for  lack  of  fuel. 

Back  Line.     See  haul  back. 

Ballhooter.     One  who  rolls  logs  down  a  hillside. 

Bank.  1.  See  Landing.  2.  The  logs  cut  or  skidded 
in  one  day  above  the  required  amount  and  held  over 
by  the  saw  crew  or  skidders,  to  be  reported  when  the 
required  daily  number  is  not  reached. 

Banking  Ground.      See  landing. 

Barker.  One  who  peels  bark  in  gathering  tanbark.  A 
peeler  or  spudder. 

Bark  Blazer.     See  scratcher. 

Bark  Gouge.     See  scratcher. 

Barking   Iron.      See   spud. 

Bark  Mark.  A  symbol  chopped  into  the  side  of  a  log 
to  indicate  its  ownership;  when  used  with  the  end 
mark,  it  serves  as  an  additional  means  of  identi- 
fication. 

Bark  Marker.     One   who   cuts   the  bark   mark   on   logs. 

Barn  Boss.  One  who  has  charge  of  the  stables  in  a 
logging  camp. 

Basal  Area.  The  area  of  a  cross  section  of  a  tree,  or 
the  sum  of  such  areas. 

Batten.  A  log  less  than  eleven  inches  in  diameter  at 
the  small  end. 

Battery.  Two  or  more  donkey  engines  for  dragging 
logs,  set  at  intervals  on  a  long  skid  road. 

Beaver.     See  swamper. 

Becket.  A  large  hook  used  in  loading  logs  on  cars  by 
means   of   tackle. 

Bicycle.  A  traveling  block,  used  on  a  cable  in  steam 
skidding. 

Bigness  Scale.     See  full  scale. 

Big  Wheels.     See   logging  wheels. 

Binder.     A  springy  pole  used  to  tighten  a  binding  chain. 

Binding  Chain.  A  chain  used  to  bind  together  a  load 
of  logs. 


466  TIMBER  BONDS 

Binding  Logs.  Logs  placed  on  the  top  of  the  chain  bind- 
ing a  load,  in  order  to  take  up  the  slack. 

BirL  To  cause  a  floating  log  to  rotate  rapidly  by  tread- 
ing  upon   it. 

Bitch  Chain.  A  short,  heavy  chain  with  hook  and  ring, 
used  to  fasten  the  lower  end  of  a  gin  pole  to  a  sled 
or  car  when  loading  logs. 

Blank.  An  opening  in  the  forest  where,  from  any  cause, 
very  few  or  no  trees  are  growing. 

Blaze.  To  mark,  by  cutting  into  trees,  the  course  of  a 
boundary,  road,  trail,  or  the  like. 

Block.     See  brail. 

Blow  DoAvn.      See  windfall. 

Blue  Jay.     See  road   monkey. 

Bluing.  The  result  of  fungus  attack,  which  turns  the 
sapwood   of   certain   trees   blue. 

Board  Foot.  The  contents  of  a  board  one  foot  square 
and  one  inch  thick.  The  common  unit  of  measure 
for  logs  and  lumber  in  the  United  States. 

Board  Measure.  The  standard  of  lumber  measurement, 
the  unit  of  which  is  the  board  foot. 

Board  Rule.  A  graduated  stick  for  determining  the  con- 
tents of  boards.  The  number  of  board  feet  in  boards 
of  given  widths  and  lengths  is  shown  upon  the  stick. 

Board  Scale.     See  board  measure. 

Bob.     See   dray. 

Bobber.     See   deadhead. 

Bob  Logs.     To  transport  logs  on  a  bob  or  dray. 

Body  Wood.  Cord  wood  cut  from  those  portions  of  the 
stems  of  trees  which  are  clear  of  branches. 

Bole.     See  stem. 

Bolster.     See  bunk. 

Boom.  Logs  or  timbers  fastened  together  end  to  end 
and  used  to  hold  floating  logs.  The  term  sometimes 
includes  the  logs  inclosed,  as  a  boom  of  logs. 

Booniage.      Toll  for  use  of  a  boom. 

Boom  Buoy.      See  boom  stay. 

Boom  Chain.  A  short  chain  which  fastens  boom  sticks 
end  to  end. 

Boom  Company.  A  corporation  engaged  in  handling 
floating  logs,  and  owning  booms  and  booming  privi- 
leges. 

Boom  Pin.  A  wooden  plug  used  to  fasten  to  boom  sticks 
the  chain,  rope  or  withe  which  holds  them  together. 

Boom  Rat.     One  who  works  on  a  boom. 

Boom  Stay.  A  heavy  weight  used  to  anchor  booms  in 
deep  water;  its  position  is  indicated  by  a  pole  or 
float  attached  to  it. 


WORDS  AND  PHRASES  467 

Boom   Stick.     A   timber   which   forms   part   of   a   boom. 

Bottle  Butted.     See  swell  butted. 

Bottom  Sill.      See  mudsill. 

Brail.  A  section  of  a  log  raft,  six  of  which  make  an 
average  tow. 

Brake  Sled.  A  logging  sled  so  constructed  that,  when 
the  pole  team  holds  back,  a  heavy  iron  on  the  side  of 
each  runner  of  the  forward  sled  is  forced  into  the 
roadbed. 

Brand.     See  mark. 

Break  Out.  1.  To  start  a  sled  whose  runners  are 
frozen  to  the  ground.  2.  To  open  a  logging  road 
after  heavy  snowfall. 

Breasthigh.  At  or  having  a  height  of  4  %  feet  above 
the  ground. 

Breastwork  Log.     See  fender  skid. 

Briar.      A  crosscut  saw. 

Bridle.  A  device  for  controlling  the  speed  of  logs  on 
a  skid  road.  It  consists  of  a  short  rope  with  two 
hooks  at  one  end,  which  are  driven  into  the  first  log 
of  the  turn;  at  the  other  end  is  a  clamp  which  runs 
over  the   cable. 

Bridle  Man.  One  who  follows  a  turn  of  logs  down  a 
skid  road  and  tends  to  the  "bridle." 

Broadleaf.      See  hardwood. 

Brow  Skid.  The  chief  beam  in  a  frame  to  which  tackle 
for  loading  logs  on  cars  is  fastened. 

Brush  a  Road.  To  cover  with  brush  the  mud  holes  and 
swampy  places  in  a  logging  road,  to  make  it  solid. 

Brush  Snow  Fence.  A  snowbreak  to  protect  a  logging 
road;  used  most  commonly  on  wide  marshes.  It  con- 
sists of  brush  which  is  set  upright  in  the  ground  be- 
fore it  freezes. 

Brutting  Crew.  A  crew  which  rolls  logs  down  slopes 
too  steep  for  teams. 

Buck.  1.  To  saw  felled  trees  into  logs.  2.  To  bring 
or  carry,  as  to  buck  water  or  wood. 

Bucker.  1.  One  who  saws  felled  trees  into  logs.  A 
cross  cutter.      2.      One  who  brings  or  carries. 

Buckwheat.     See  hang  up. 

Buckwheater.     A  novice  at  lumbering. 

Bull  Chain.  1.  A  very  heavy  chain,  to  which  a  number 
of  short  chains,  with  hooks  on  one  end  and  dogs  on 
the  other,  are  attached.  It  is  used  to  draw  logs  from 
the  mill  pond  up  the  gang  way.      2.     See  jack  chain. 

Bull  Cook.     See  chore  boy. 

Bull  Donkey.     A  large  donkey  engine  which,  by  drum 


468  TIMBER  BONDS 

and  cable,  drags  logs  from  the  place  where  they  are 

yarded  to  a  landing. 
Bully.     A  common  name  for  the  foreman  or  boss  of  a 

logging  camp. 
Bummer.     A   small   truck   with   two   low   wheels  and   a 

long  pole,  used  in  skidding  logs. 
Bunch  Load.     To  encircle  several  logs  with  a  chain  and 

load  them  at  once,  by  steam  or  horse  power. 
Bunch  Logs.     To  collect  logs  in  one  place  for  loading. 
Bunk.      1.     The  heavy  timber  upon  which  the  logs  rest 

on  a  logging  sled.      2.     The  cross  beam  on  a  log  car 

or  truck.      3.     A  log  car  or  truck. 
Bunk  Chain.     See  toggle  chain. 
Bunk  Hook.     The  hook  attached  to  the  end  of  the  bunk 

on  a   logging  car,   which   may  be  raised   to   hold   the 

logs  in  place  or  lowered  to  release  them. 
Bunk  Load.     A  load  of  logs  not  over  one  log  deep;  one 

in  which  every  logs  rests  on  the  bunks. 
Bunk   Spikes.     Sharp   spikes   set   upright   in   the   bunks 

of  a  logging  sled  to  hold  the  logs  in  place. 
Burn.     An  area  over  which  fire  has  run  to  the  noticeable 

injury  of  the  forest. 
Bush  a  Road.     To  mark   the  route   of   a   logging  road 

across  a  marsh  or  the  ice  by  setting  up  bushes. 
Butt.     The  base  of  a  tree,  or  the  big  end  of  a  log. 
Butt  Cut.      1.     The  first  log  above  the  stump.      2.     In 

gathering  tanbark  the  section  of  the  bark  taken  from 

the  butt  of  a  tree  before  felling  it  for  further  peeling. 
Butt  Hook.     The  hook  by  which  the  cable  is  attached 

to  the  tackle  on  the  logs. 
Butt  Log.     See  butt  cut. 
Butt  Off.      1.     To  cut  a  piece  from  the  end  of  a  log  on 

account  of  a  defect.      2.     To  square  the  end  of  a  log. 
Buttress.     A  wall  or  abutment  built  along  a  stream  to 

prevent   the   logs   in   a   drive   from   cutting  the   bank 

or    jamming. 
Butt  Team.     In   a   logging  team   of  four  or   more,   the 

pair  nearest  the  load. 
Caliper.     An  instrument  for  measuring  the  diameter  of 

trees  or  logs,  usually  consisting  of  a  graduated  beam 

to  which  is  attached  one  fixed  and  one  sliding  arm. 
Camp  Inspector.     A  lazy  lumberjack,  who  goes  from  one 

logging  camp  to  another,  working  only  a  short  time 

in  each. 
Cannon  a  Log.     In  loading  logs  by  steam  or  horse  power, 

to  send  up  a  log  so  that  it  swings  crosswise,  instead 

of  parallel  to  the  load. 
Cant  Dog.     See  cant  hook. 


WORDS  AND  PHRASES  469 

Cant  Hook.  A  tool  like  a  peavey,  but  having  a  toe  ring 
and  lip  at  the  end  instead  of  a  pike. 

Cap.  A  cone  of  sheet  iron  or  steel,  with  a  hole  in  the 
end  through  which  a  chain  passes,  which  is  fitted 
over  the  end  of  a  log  before  snaking  it,  to  prevent 
catching  on  stumps,  roots,  or  other  obstacles  in  steam 
skidding. 

Catiimaran.  A  small  raft  carrying  a  windlass  and  grap- 
ple, used  to  recover  sunken  logs. 

Catch  Boom.  A  boom  fastened  across  stream  to  catch 
and  hold  floating  logs. 

Catface.  A  partly  healed  over  fire  scar  on  the  stem  of  a 
tree. 

Catpiece.  A  small  stick  in  which  holes  are  made  at 
regular  intervals,  placed  on  the  top  of  uprights  firmly 
set  in  floating  booms.  The  uprights  are  fitted  to  enter 
the  holes  in  the  catpiece,  so  as  to  narrow  or  widen 
the  space  between  the  booms  at  the  entrance  to  a 
sluiceway  or  sorting  jack.  The  catpiece  is  held  by 
the  uprights  high  enough  above  water  to  allow  logs 
to  float  freely  under  It. 

Cattynian.     An   expert  river  driver. 

Center  Jam.  A  jam  formed  on  an  obstacle  in  the  middle 
of  a  stream,  and  which  does  not  reach  either  shore. 

Chain  Grapples.      See   grapples. 

Chain   Tender.     See   sled   tender. 

Check.  A  longitudinal  crack  in  timber  caused  by  too 
rapid  seasoning. 

Cheese  Block.      See  chock  block. 

Chock  Block.  A  small  wedge  or  block  used  to  prevent 
a  log  from  rolling. 

Choker.     A  noose  of  wire  rope  by  which  a  log  is  dragged. 

Choker  3Ian.  The  member  of  a  yarding  crew  who 
fastens  the  choker  on  the  logs. 

Chopper.     See  faller. 

Chore  Boy.  One  who  cleans  up  the  sleeping  quarters 
and  stables  in  a  logging  camp,  cuts  firewood,  builds 
fires  and  carries  water. 

Chunk.  To  clear  the  ground  with  engine  or  horses,  of 
obstructions    which    can    not    be    removed    by    hand. 

Chunk  Up.  To  collect  and  pile  for  burning  the  slash  left 
after   logging. 

Churn  Butted.      See  swell  butted. 

Chute.      See  slide. 

Clean  Cutting.  1.  The  cutting  of  the  entire  stand. 
2.  An  area  upon  which  the  entire  stand  has  been 
cut. 

Clean  Cutting  Method.     A  method  of  conservative  lum- 


470  TIMBER  BONDS 

bering  in  which  the  entire  stand  is  cut  at  one  time  and 
reproduction  is  secured  by  sowing  or  planting.  See 
forest   management. 

Cleaning.  A  thinning  made  in  a  stand  which  has  not 
reached  the  small-pole  stage.  Its  main  object  is  to  re- 
move trees  of  undesirable  form  and  species.  See 
thinning. 

Clear  Length.  In  silvics  that  portion  of  the  stem  of 
a  tree  free  from  branches.  In  forest  measurements 
the  meaning  of  the  term  varies  with  the  species  meas- 
ured and  the  purpose  of  the  measurements.  For  ex- 
ample, clear  length  is  in  some  cases  used  to  designate 
that  portion  of  the  stem  entirely  free  from  branches; 
in  others,  that  portion  free  from  dead  branches,  or 
from  growing  branches  of  a  given  size. 

Closed.     See  crown  density. 

Coal  Off.     To  cut  a  forest  clean  for  charcoal  wood. 

Commissary.     A  general  store  for  supplying  lumbermen. 

Conk.  1.  The  decay  in  the  wood  of  trees  caused  by 
a  fungus.  2.  The  visible  fruiting  organ  of  a  tree 
fungus. 

Conky.     Affected    by    conk. 

Conservative  Lumbering.  Practical  forestry;  any  meth- 
od of  lumbering  which  perpetuates  the  forest  by  use. 

Cook  Camp.  The  building  used  as  kitchen  and  dining 
room  in  a  logging  camp. 

Cookee.  Assistant  cook  and  dishwasher  in  a  logging 
camp. 

Cook  Shanty.     See  cook  camp. 

Cook  House.     See  cook  camp. 

Coppice.     See  sprout. 

Corkscrew.     A   geared   locomotive. 

Corner  Binds.  Four  stout  chains,  used  on  logging  sleds, 
to  bind  the  two  outside  logs  of  the  lower  tier  to  the 
bunks,  and  thus  gives  a  firm  bottom  to  the  load. 

Corner  Man.  In  building  a  camp  or  barn  of  logs,  one 
who  notches  the  logs  so  that  they  will  fit  closely  and 
make  a  square  corner. 

Coupling  grab.     See  grapples. 

Crab.  A  small  raft  bearing  a  windlass  and  anchor 
used  to  move  log  rafts  up  stream  or  across  a  lake. 

Cradle.  A  framework  of  timbers  in  which  ocean  going 
rafts  of  logs  are  built. 

Cradle  Knolls.  Small  knolls  which  require  grading  in 
the  construction  of  logging  roads. 

Crazy  Chain.  The  short  chain  used  to  hold  up  that 
tongue  of  a  sprinkler  sled  which  is  not  in  use. 


WORDS  AND  PHRASES  471 

Crib.  Specifically,  a  raft  of  logs;  loosely  applied  to  a 
boom  of   logs. 

Crib  Logs.  To  surround  floating  logs  with  a  boom  and 
draw  them  by  a  windlass  on  a  raft,  or  to  tow  them 
with  a  steamboat. 

Cross  Chains.  Chains  connecting  the  front  and  rear 
sleds  of  a  logging  sled. 

Cross  Cutter.     See  bucker. 

Cross  Haul.  1.  The  cleared  space  in  which  a  team 
moves  when  cross  hauling.  2.  To  load  cars  or  sleds 
with  logs  by  horse  power  and  crotch  or  loading  chain. 

Crotch.  To  cut  notches  on  opposite  sides  of  a  log  near 
the  end,  into  which  dogs  are  fastened. 

Crotch  Chain.  A  tackle  for  loading  logs  on  sleds,  cars, 
or  skidways  by  cross  hauling. 

Crotch  Tongue.  Two  pieces  of  wood,  in  the  form  of  a 
V,  joining  the  front  and  rear  sleds  of  a  logging  sled. 

CrowTi.  In  silvics,  the  upper  part  of  a  tree,  including 
the  living  branches  with  their  foliage.  In  forest 
measurements  the  use  of  the  term  varies  with  the  kind 
of  tree  and  the  purpose  of  the  measurements.  For 
example,  crown  may  be  used  to  designate  the  whole 
leaf  and  branch  system  or  that  portion  of  it  above  a 
dead  or  a  growing  branch  of  a  given  size.  In  tree 
description  the  crown  is  described  as  long  or  short, 
broad  or  narrow,  compact  or  ragged,  conical  or  flat. 

CroAvn  Class.  All  trees  in  a  stand  occupying  a  similar 
position  in  the  crown  cover.  Dominant,  intermediate, 
overtopped,  and  suppressed  trees  each  constitute  a 
crown  class. 

Crown  Cover.  The  canopy  formed  by  the  crowns  of  all 
the  trees  in  a  forest,  or,  in  an  irregular  forest,  by  the 
crowns  of  all  trees  in  a  special  crown  class. 

Crown  Density.  The  density  of  the  crowns  of  the  trees 
in  a  forest;  it  is  usually  measured  by  the  extent  to 
which  the  ground  is  shaded.  The  degrees  of  crown 
density  in  a  forest  are  expressed  in  the  following 
terms:  Closed.  "When  the  crowns  form  an  uninter- 
rupted cover  and  permit  little  or  no  sunlight  to  reach 
the  ground.  Dense.  When  three-fourths  or  more  of 
the  ground  is  shaded.  Thin.  When  three-fourths  to  one- 
half  of  the  ground  is  shaded  by  the  crowns.  Open. 
When  less  than  one-half  the  ground  is  shaded  by  the 
crowns.  Park  forest  is  a  forest  in  which  shade  occurs 
only  in  isolated  patches,  under  single  trees  or  small 
groups. 

CrowTJ  Fire.     See  forest  fire. 


472  TIMBER  BONDS 

Cruise.  To  estimate  the  amount  and  value  of  standing 
timber. 

Cruiser.     One  who  cruises.     An  estimator,  a  land  looker. 

Cruiser's  Bark  Blazer.     See  scratcher. 

Cull.  1.  Logs  which  are  rejected,  or  parts  of  logs  de- 
ducted in  measurements  on  account  of  defects.  2. 
To  take  out  of  a  forest  by  selection  a  portion  of  the 
trees. 

Culled  Forest.  Forest  from  which  cuttings  by  selection 
have  removed  a  portion  of  the  trees. 

Current  Annual  Increment.  The  volume  of  wood  pro- 
duced in  a  given  year  by  the  growth  of  a  tree  or  stand. 

Cut.     A  season's  output  of  logs. 

Cut  a  Log.  To  move  one  end  of  a  log  forward  or  back- 
ward, so  that  the  log  will  roll  in  the  desired  direction. 

Cut  Off.  An  artificial  channel  by  which  the  course  of 
a  stream  is  straightened,  to  facilitate  log  driving. 

Cut-Over  Forest.  Forest  in  which  most  or  all  of  the 
merchantable  timber  has  been  cut. 

Cutting  Area.  The  area  over  which  cuttings  are  to  be 
or  have  been  made. 

Cutting  Height.  The  height  above  the  ground  at  which 
a  tree  is  to  be  cut.     See  stump  height. 

Cutting  Series.  A  block  or  a  part  of  a  block  containing 
even  aged  stands  whose  ages  differ  uniformly  within 
given  limits  and  which  are  to  be  cut  in  turn,  the  cut- 
ting usually  following  a  given  direction.  A  perfect 
cutting  series  seldom  exists,  except  under  the  clean  cut- 
ting method  followed  by  artificial  reproduction,  or 
under  the  sprout  method. 

Deaden.     To    kill    a    standing    tree    by    girdling   it. 

Deadening.  An  area  upon  which  the  trees  have  been 
deadened. 

Deadener.  A  heavy  log  or  timber,  with  spikes  set  in  the 
butt  end,  so  fastened  in  a  log  slide  that  the  logs  pass- 
ing under  it  come  in  contact  with  the  spikes  and 
have   their  speed  retarded. 

Deacon  Seat.  The  bench  in  front  of  the  sleeping  bunks 
in   a  logging  camp. 

Deadhead.     A  sunken  or  partly  sunken  log. 

Deadman.  A  fallen  tree  on  the  shore,  or  the  timber 
to  which  the  hawser  of  a  boom  is  attached. 

Deadwater.     See  Stillwater. 

Decker.     One  who  rolls  logs  upon  a  skidway  or  log  deck. 

Decking  Chain.      See   loading  chain. 

Deck  Up.     To  pile  logs  upon  a  skidway. 

Deer  Foot.  A  V-shaped  iron  catch  on  the  side  of  a 
logging  car,  in  which  the  binding  chain  is  fastened. 


WORDS  AND   PHRASES  478 

Dehorn.  To  saw  off  the  ends  of  logs  bearing  the  owner's 
marks  and  put  on  a  new  mark. 

Dense.     See  crown  density. 

Diameter  Breasthigh.  The  diameter  of  a  tree  4  Vz  feet 
above  the  ground. 

Diameter  Class.  All  trees  in  a  stand  whose  diameters 
are  within  prescribed   limits. 

Diameter  Growth.     The  increase  in  diameter  of  a  tree. 

Diameter  Limit.  The  diameter  usually  breasthigh, 
which  defines  the  size  to  which  trees  are  to  be  meas- 
ured or  used  for  any  given  purpose. 

Diameter  Tape.  A  tape  for  ascertaining  the  diameter 
of  trees,  so  graduated  that  the  diameter  corresponding 
to  the  girth  of  a  tree  is  read  directly  from  the  tape. 

Dingle.  The  roofed  over  space  between  the  kitchen  and 
the  sleeping  quarters  in  a  logging  camp,  commonly 
used  as  a  store  room. 

Dinkey.     A  small  locomotive. 

Dog.  A  short,  heavy  piece  of  steel,  bent  and  pointed  at 
one  end,  and  with  an  eye  or  ring  at  the  other.  It  is 
used  for  many  purposes  in  logging,  and  is  sometimes  so 
shaped  that  a  blow  directly  against  the  line  of  draft 
will  loosen  it. 

Dog  Boat.     See  rigging  sled. 

Dogger.  One  who  attaches  the  dogs  or  hooks  to  a  log 
before  it  is  steam  skidded. 

Dog  Hooks.  1.  The  strong  hook  on  the  end  of  a  dog- 
warp.  2.  A  hook  on  the  end  of  a  haul-up  chain  of  a 
size  to  permit  its  being  hooked  into  a  link  of  the 
chain  when  the  latter  is  looped  around  a  log  or  other 
object. 

Dogs.     See   skidding  tongs. 

Dogwarp.  A  rope  with  a  strong  hook  on  the  end,  which 
is  used  in  breaking  dangerous  jams  on  falls  and 
rapids  and  in  moving  logs  from  other  difficult  posi- 
tions. 

Dog  Wedge.  An  iron  wedge  with  a  ring  in  the  butt, 
which  is  driven  into  the  end  of  a  log  and  a  chain 
hitched  in  the  ring  for  skidding  the  log  by  horse- 
power; also  used  in  gathering  up  logs  on  a  drive  by 
running  a  rope  through  the  rings  and  pulling  a  num- 
ber of  logs  at  a  time  through  marshes  or  partly  sub- 
merged meadows  to  the  channel. 

Dolly.     See  upright  roller. 

Dolphin.  A  cluster  of  piles  to  which  a  boom  is  se- 
cured. 


474  TIMBER  BONDS 

Dominant.  Having  the  crown  free  to  light  on  all  sides 
because   of   greater   height. 

Donkey.  A  portable  steam  engine  equipped  with  drum 
and  cable,  used  in  steam  logging.  See  road  donkey, 
yarding  donkey,  bull  donkey,   spool  donkey. 

Donkey  Sled.  The  heavy  sledlike  frame  upon  which  a 
donkey  engine  is  fastened. 

Dote.  The  general  term  used  by  lumbermen  to  denote 
decay  or  rot  in  timber. 

Doty.     Decayed. 

Double  Couplers.  Two  coupling  grabs  joined  by  a  short 
cable  used  for  fastening  logs  together. 

Double  Header.  A  place  from  which  it  is  possible  to 
haul  a  full  load  of  logs  to  the  landing,  and  where 
partial  loads  are  topped  out  or  finished  to  the  full 
hauling   capacity  of   teams. 

DoAvn  Hill  Clevis.  A  brake  on  a  logging  sled,  consisting 
of  a  clevis  encircling  the  runner,  to  the  bottom  of 
which  a  heavy  square  piece  of  iron  is  welded. 

Drag  Cart.      See  bummer. 

Drag  In.      See  dray  in. 

Drag  Road.     See  dray  road;  gutter  road. 

Dray  Sled.     See  dray. 

Draw  Hook.      See  gooseneck. 

Draw  Skid.      See  brow  skid. 

Dray.  A  single  sled  used  in  dragging  logs.  One  end 
of  the  log  rests  upon  the  sled. 

Dray  In.  To  drag  logs  from  the  place  where  they  are 
cut   directly   to   the   skidway   or   landing. 

Dray  Road.  A  narrow  road,  cut  wide  enough  to  allow 
the  passage  of  a  team  and  dray. 

Drive.  1.  To  float  logs  or  timbers  from  the  forest 
to  the  mill  or  shipping  point.  2.  A  body  of  logs  or 
timbers  in  process  of  being  floated  from  the  forest 
to  the  mill  or  shipping  point.  3.  That  part  of  log- 
ging which  consists  in  floating  logs  or  timbers. 

Drum  Logs.  To  haul  logs  by  drum  and  cable  out  of  a 
hollow  or  cove. 

Dry-Ki.     Trees    killed    by    flooding. 

Dry  Pick.  As  applied  to  a  jam,  to  remove  logs  singly 
while  the  water  is   cut  off. 

Dry  Roll.  In  sacking  the  rear,  to  roll  stranded  logs  into 
the  bed  of  the  stream  from  which  the  water  has 
been  cut  off  preparatory  to  flooding. 

Dry  Rot.     Decay  in  timber  without  apparent  moisture. 

Dry  SUde.      See  slide. 

Dry  Sloop.     To  sloop  lo^s  on  bare  ground  when  the  slope 


WORDS  AND   PHRASES  475 

is  so  steep  that  it  would  be  dangerous  to  sloop  on 
snow. 

Dry  Topped.  Having  a  dead  or  partially  defoliated 
crown,  discolored  foliage,  as  the  result  of  injury  or 
disease. 

Dudler.     See   dudley. 

Dudley.  An  engine  for  hauling  logs,  which  propels  it- 
self and  drays  its  load  by  revolving  a  large  spool 
around  which  are  several  turns  of  a  cable  fixed  at 
each  end  of  the  track. 

Duffle.  The  personal  belongings  of  a  woodsman  or 
lumberjack  which  he  takes  into  the  woods;   dunnage. 

Dump  Hook.  A  levered  chain  grab  hook  attached  to  the 
evener  to  which  a  team  is  hitched  when  loading  logs. 
A  movement  of  the  lever  releases  the  hook  from  the 
logging  chain  without  stopping  the  team. 

Dump  Logs.  To  roll  logs  over  a  bluff,  or  from  a  logging 
car  or  sled  into  the  water. 

Dust  a  Dam.  To  fill  up  with  earth  or  gravel  the  cracks 
or  small  holes  between  planks  in  the  gate  of  a  splash 
dam. 

Dutchman.  A  short  stick  placed  transversely  between 
the  outer  logs  of  a  load  to  divert  the  load  toward 
the  middle  and  so  keep  any  logs  from  falling  off. 

End  Mark.     See  mark. 

Estimate.     See  cruise. 

Estimator.      See  cruiser. 

Expectation  Value.     See  forest  expectation  value. 

Experiment  Area.  A  forest  area  of  known  size  upon 
which  successive  measurements  or  other  detailed 
studies  are  made  for  the  determination  of  the  growth 
and  behavior  of  the  stand,  or  upon  which  experiments 
are  conducted  to  ascertain  the  effect  of  methods  of 
treatment  upon  the  forest. 

Exposure.     See  aspect. 

Face  Log.      See  head  log. 

Faller.  One  who  fells  trees.  See  head  faller.  Second 
faller. 

Falling  Ax.  An  ax  with  a  long  helve  and  a  long  nar- 
row  bit,   designed  especially   for   felling  trees. 

Falling  Wedge.  A  wedge  used  to  throw  a  tree  in  the 
desired  direction,  by  driving  it  into  the  saw  kerf. 

False  Ring.  The  layer  of  wood,  less  than  a  full  season's 
growth,  and  seldom  extending  around  the  stem,  which 
is  formed  whenever  the  diameter  growth  of  a  tree 
is  interrupted  and  begins  again  during  the  same  grow- 
ing season. 

Feeder.     See  barn  boss. 


476  TIMBER  BONDS 

Fender  Boom.      See  shear  boom. 

Fender  Skid.  A  skid  placed  on  the  lower  side  of  a 
skidding  trail  on  a  slope  to  hold  the  log  on  the  trail 
while  being  skidded. 

Fid  Hook.  A  slender,  flat  hook  used  to  keep  another 
hook  from  slipping  on  a  chain. 

Filer.     One  who  files  the  saws.     A  saw  fitter. 

Final  Yield.  All  material  derived  from  reproduction 
cuttings  or  clean  cuttings.  It  is  usually  the  chief 
crop,  and  marks  the  end  of  the  rotation. 

Fire  Line.  A  strip  kept  clear  of  inflammable  material 
as  a  protection  against  the  spread  of  forest  fire. 

First  Growth.  1.  Natural  forest  in  which  no  cuttings 
have  been  made.  2.  Trees  grown  before  lumbering 
or  severe  fire  entered  the  forest;  belonging  to  the 
original  stand. 

Fitter.  1.  One  who  notches  the  tree  for  felling  and 
after  it  is  felled,  marks  the  log  lengths  into  which  it 
is  to  be  cut.  2.  One  who  cuts  limbs  from  felled 
trees  and  rings  and  slits  the  bark,  preparatory  to 
peeling  tanbark. 

Float.      See  drive. 

Float  Road.  A  channel  cleared  in  a  swamp  and  used 
to  float  cypress  logs  from  ihe  woods  to  the  boom  at 
the  river  or  mill. 

Flood.      See  splash. 

Flood  Dam.     See  splash  dam. 

Flume.  1.  To  transport  logs  or  timbers  by  a  flume. 
2.  An  inclined  trough  in  which  water  runs,  used  in 
transporting  logs  or  timbers. 

Flunkey.  An  assistant,  usually  either  to  the  engineer 
of  a  donkey  engine  or  to  the  cook  in  a  logging  camp; 
a  chore  boy. 

Flying  Drive.  A  drive  the  main  portion  of  which  is 
put  through  with  the  utmost  dispatch,  without  stop- 
ping to  pick  rear. 

Fly  Rollway.  A  skidway  or  landing  on  a  steep  slope, 
from  which  the  logs  are  released  at  once  by  removing 
the   brace   which  holds   them. 

Fore  and  Aft  Road.  A  skid  road  road  made  of  logs 
placed  parallel  to  its  direction,  making  the  road  re- 
semble a  chute. 

Forest.  An  area  whose  principal  crop  is  trees.  A 
forest  includes  both  the  forest  cover  and  the  soil  be- 
neath it.  A  forest  judged  by  the  character  of  the 
stand  may  be  timberland  or  woodland.  These  consti- 
tute the  two  great  classes  of  forests,  between  which 
is   is   possible   to   draw    a   practical    but   not   an   ab- 


WORDS  AND  PHRASES  477 

solute  distinction.  Timberland  may  be  broadly  de- 
fined as  that  class  of  forest  which  contains  in  com- 
mercial quantities  trees  of  sufficient  size  and  of  the  re- 
quired kind  to  furnish  saw  logs,  pulp  wood,  ties,  poles 
or  wood  for  similar  uses.  Woodland  may  be  broadly 
defined  as  forest  which  contains  trees  fit  for  firewood 
or  fencing,  but  none  or  very  few  trees  which  are  suita- 
ble for  the  uses  enumerated  above.  A  timber  tract  is  a 
body  of  timberland,  usually  of  large  area.  A  woodlot 
is  a  forest  of  small  area  in  which  the  wood  is  used 
mainly  for  fuel,  fencing,  and  other  farm  purposes. 

Forest  Capital.  The  capital  which  a  forest  represents. 
It  consists  of  the  forest  land  or  fixed  capital,  and 
the    stand. 

Forest  Cover.      All   trees   and   other  plants   in   a   forest. 

Forester.     One  who  practices  forestry  as  a  profession. 

Forest  Expectation  Value.  The  present  net  value  of  all 
future  returns  expected  from  the  forest  capital.  It 
is  determined  by  discounting  to  the  present  time, 
at  compound  interest,  all  returns  and  expenses  antici- 
pated. 

Forest  Extension.  The  establishment  of  forest  upon 
areas  where  it  is  at  present  absent  or  insufficient. 

Forest  Fire.  A  fire  in  timberland  or  woodland.  A  forest 
fire  may  be  a  ground  fire,  a  surface  fire,  a  stand  fire, 
or  a  crown  fire.  A  ground  fire  is  one  which  burns  in 
the  forest  floor  and  does  not  appear  above  the  ground. 
When  a  fire  runs  over  the  surface  or  burns  the  under- 
growth, it  is  a  surface  fire.  When  a  surface  fire 
spreads  from  the  undergrowth  to  the  stand,  igniting 
the  trees,  it  becomes  a  stand  fire.  Under  certain  con- 
ditions the  crowns  of  the  trees  may  be  ignited,  caus- 
ing a  crown  fire. 

Forest  Floor.  The  deposit  of  vegetable  matter  on  the 
ground  in  a  forest.  Litter  includes  the  upper,  but 
slightly  decomposed  portion  of  the  forest  fioor;  humus, 
the  portion  in  which  decomposition  is  well  advanced. 

Forest  Influences.  All  effects  resulting  from  the  pres- 
ece  of  the  forest,  upon  health,  climate,  stream  fiow 
and  economic  conditions. 

Forest  Management.  The  practical  application  of  the 
principles  of  forestry  to  forest  area.  Forest  manage- 
ment includes  forest  mensuration,  or  the  determina- 
tion of  the  present  and  future  products  of  the  forest. 
Forest  organization,  or  the  preparation  of  working 
plans  and  planting  plans,  detailed  and  comprehensive 
schemes  for  the  establishment  and  best  use  of  the 
forest;  and  forest  finance,  or  the  determination  of  the 


478  TIMBER  BONDS 

money  returns  from  forestry.  Three  great  systems  of 
forest  management  are  distinguished:  The  seed  sys- 
tem, the  sprout  system  and  the  composite  system.  The 
seed  system  includes  the  stand  method,  group  method, 
strip  method,  patch  method,  strip  stand  method,  group 
seed  method,  scattered  seed  method,  single  tree  meth- 
od, reserve  seed  method,  clean  cutting  method.  The 
sprout  system  includes  the  sprout  method.  The  com- 
posite system  includes  the  reserve  sprout  method. 

Forest  Policy.  The  principles  which  govern  the  ad- 
ministration  of  a  forest  for   its  best  permanent  use. 

Forest  Products.  All  usable  material  yielded  by  the 
forest.  Major  products  include  all  wood  harvested 
for  any  purpose.  Minor  products  include  all  forest 
products  except  wood. 

Forest  Protection.  The  safeguarding  of  the  forest 
against  any  damage  not  caused  by  its  own  growth. 

Forestry.  The  science  and  art  of  making  the  best  per- 
manent use  of  the  forest.  The  main  branches  of 
forestry  are  forest  policy,  silviculture,  forest  manage- 
ment,  forest  protection  and   forest  utilization. 

Forest  Type.  A  forest  or  a  part  of  a  forest  possessing 
distinctive  characteristics  of  composition  or  habits  of 
growth. 

Form  Class.  All  trees  in  a  stand  so  similar  in  form 
that  the  same  form  factor  is  applicable  in  determin- 
ing their  actual  volume. 

Form  Factor.  The  ratio  expressed  decimally  between 
the  volume  of  a  tree,  or  portion  of  a  tree,  and  of  a 
cylinder  of  the  same  height  and  diameter.  The  vol- 
ume of  this  cylinder  multiplied  by  the  form  factor 
gives  the  actual  volume  of  the  tree  or  portion  of  the 
tree.  Three  kinds  of  form  factors  are  distinguished, 
according  to  the  portion  of  the  tree  to  which  they 
refer:  A  tree  form  factor  is  used  for  determining  the 
actual  volume  of  the  whole  tree;  a  stem  form  factor 
for  determining  the  volume  of  the  stem,  and  a  timber 
form  factor  for  determining  the  merchantable  contents 
of  stem,  crown  or  both.  A  form  factor  is  called  ab- 
solute, when  the  diameter  of  the  tree  is  measured  at 
any  convenient  height,  the  form  factor  referring  only 
to  that  portion  of  the  tree  above  the  point  at  which 
the  diameter  is  measured;  normal,  when  the  diameter 
is  measured  at  a  height  in  constant  ratio  to  the  total 
height  of  the  tree;  and  artificial,  when  the  breasthigh 
diameter  is  measured. 

Four  Paws.     See  double  couplers. 

Frog.     1.     The   junction   of  two   branches  of  a  flume. 


WORDS  AND  PHRASES  479 

2.  A  timber  placed  at  the  mouth  of  a  slide  to  direct 
the  discharge  of  the  logs. 

Full  Scale.  Measurement  of  logs,  in  which  no  reduction 
is  made  for  defects. 

Future  Yield.  The  amount  of  wood  which  given  trees 
upon  a  given  area  will  contain  after  a  given  period. 

Future  Yield  Table.  A  tabular  statement  of  future 
yield. 

Gangway.  The  incline  plane  up  which  logs  are  moved 
from  the  water  into  a  sawmill. 

Gap  Stick.  The  pole  placed  across  the  entrance  of  a 
sorting  jack  to  close  it,  when  not  in  use. 

Gee  Throw.  A  heavy,  wooden  lever,  with  a  curved  iron 
point,  used  to  break  out  logging  sleds. 

Gin  Pole.  A  pole  secured  by  guy  ropes  to  the  top  of 
which  tackle  for  loading  logs  is  fastened. 

Glancer.     See  fender  skid. 

Glancer  Boom.     See  shear  boom. 

Glisse  Skids.  Freshly  peeled  skids  upon  which  logs  are 
slid  instead  of  rolled  when  being  loaded. 

Go  Back  Road.  A  road  upon  which  unloaded  logging 
sleds  can  return  to  the  skidways  for  reloading,  without 
meeting  the  loaded  sleds  en  route  to  the  landing. 

Go-Devil.     See  dray. 

Gooseneck.  1.  A  wooden  bar  used  to  couple  two  log- 
ging trunks.  2.  The  point  of  draft  on  a  logging 
sled;  it  consists  of  a  curved  iron  hook  bolted  to  the 
roll.  3.  A  curved  iron  driven  into  the  bottom  of 
a   slide  to   check   the   speed   of   descending   logs. 

Goosepen.     A  large  hole  burned   in  a  standing  tree. 

Grab  Hook.  A  hook  having  a  narrow  throat,  adapted 
to  grasp  any  link  of  a  chain. 

Grab  Link.      See  slip  grab. 

Grabs.      See  skidding  tongs. 

Grab  Skipper.  A  short  iron  pry  or  hammer,  used  to 
remove  the  skidding  tongs  from  a  log. 

Grapples.  1.  Two  small  iron  dogs  joined  by  a  short 
chain,  and  used  to  couple  logs  end  to  end  when  skid- 
ding on  mountains,  so  that  several  logs  may  be  skid- 
ded by  one  horse  at  the  same  time.  See  skidding 
tongs. 

Gravel  a  Dam.  To  cover  with  gravel  or  earth  the 
upstream  side  of  the  timber  work  of  a  dam  to  make 
it   water   tight. 

Greaser.     See  road  monkey. 

Grips.     See  skidding  tongs. 

Ground  Cover.     All  small  plants  growing  in  a  forest  ex- 


480  TIMBER  BONDS 

cept  young  trees;  such  as  ferns,  mosses,  grasses  and 
weeds.     See  underbrush. 

Ground  Fire.     See  forest  fire. 

Ground  Loader.     See  send-up  man. 

Group  Method.  A  method  of  conservative  lumbering 
in  which  groups  of  young  trees  which  have  sprung  up 
in  openings  caused  by  logging,  insect  damage,  wind- 
fall, snowbreak,  or  other  agency,  are  taken  as  start- 
ing points  for  the  future  forests;  or  if  these  are 
insufficient,  small  openings  are  purposely  made.  Re- 
production by  self-sown  seed  from  the  mature  stand 
at  the  edges  of  these  groups  is  secured  by  careful  cut- 
tings, which  extend  the  groups  until  they  join. 

Group  Mixture.  A  mixed  forest  in  which  trees  of  the 
same  species  occur  in  groups  not  large  enough  to  be 
considered  pure  stands. 

Group  Seed  Method.  A  method  of  conservative  lumber- 
ing in  which  the  forest  is  reproduced  after  a  single 
cutting,  by  leaving  in  groups  seed  trees  of  the  kind  de- 
sired. 

Grouser.  A  large  and  long  stick  of  square  timber 
sharpened  at  the  lower  end  and  placed  in  the  bow 
of  a  steam  logging  boat;  it  takes  the  place  of  an  anchor 
in  shallow  water,  and  can  be  raised  or  lowered  by 
steam  power. 

Guard  a  Hill.  To  keep  a  logging  road  on  steep  decline 
in  condition  for  use. 

Gun.  To  aim  a  tree  in  felling  it.  In  the  case  of  a  very 
large  brittle  tree,  such  as  redwood,  a  sighting  device 
is  used. 

Gunning    Stick.      See    gun. 

Gutterman.     See  swamper. 

Gutter  Road.     The  path  followed  in  skidding  logs. 

Handbarrow.  Two  strong,  light  poles  held  in  position 
by  rungs,  upon  which  bark  or  wood  is  carried  by  two 
men. 

Hand  Pike.  A  piked  lever  usually  six  to  eight  feet  long 
for  handling  floating  logs. 

Hand  Skidder.  One  who  accompanies  a  log  as  it  is  be- 
ing dragged  and  places  short  skids  beneath  it. 

Hang  the  Boom.      To   put   the  boom   in   place. 

Hang  Up.  1.  To  fell  a  tree  so  that  it  catches  against 
another  instead  of  falling  to  the  ground.  2.  As  ap- 
plied to  river  driving,  to  discontinue;  thus  a  drive  may 
be  "hung  up"  for  lack  of  water,  or  for  some  other 
reason. 

Hardwood.  As  applied  to  trees  and  logs,  broadleafed, 
belonging  to  the  dicotyledons. 


WORDS   AND   PHRASES  481 

Haul.  In  logging,  the  distance  and  route  over  which 
teams  must  go  between  two  given  points,  as  between 
the  yard  or  skidway  and  the  landing. 

Haul  Back.  A  small  wire  rope,  traveling  between  the 
donkey  engine  and  a  pulley,  set  near  the  logs  to  be 
dragged,  used  to  return  the  cable. 

Haul  Up.  A  light  chain  and  hook  by  which  a  horse 
may  be  hitched  to  a  cable  to  move  it  where  desired. 

Hay  Road.      See  tote  road. 

Hay  Wire  Outfit.  A  contemptuous  term  for  loggers  with 
poor  equipment. 

Head  Block.  The  logs  placed  under  the  front  end  of  the 
skids  in  a  skidway  to  raise  them  to  the  desired  height. 

Head  Driver.  An  expert  river  driver  who,  during  the 
drive,  is  stationed  at  a  point  where  a  jam  is  feared. 
Head  drivers  usually  work  in  pairs. 

Head  Paller.      The  chief  of  a  crew  of  fallers. 

Head  Log.  1.  The  front  bottom  log  on  a  skidway. 
2.      The  front  log  in  a  turn. 

Head  Push.     See  straw  boss. 

Headquarter.s.  In  logging,  the  distributing  point  for 
supplies,  equipment  and  mail;  not  usually  the  execu- 
tive or  administrative  center. 

Head  Tree.  In  steam  skidding,  the  tree  to  which  the 
cable  upon  which  the  traveler  runs  is  attached. 

Headworks.  A  platform  or  raft,  with  windlass  or  cap- 
stan, which  is  attached  to  the  front  of  a  log  raft  or 
boom  of  logs,  for  warping,  kedging,  or  winding  it 
through  lakes  or  still  water,  by  hand  or  horse  power. 

Height  Class.  All  trees  in  a  stand  whose  heights  are 
within  prescribed  limits. 

Height  Growth.      The  increase  in  height  of  a  tree. 

Height  Measure.  An  instrument  for  measuring  the 
height  of  a  tree. 

Helper.      See  second    faller. 

Hoist.      See    loading    tripod. 

Holding  Boom.      See  storage  boom. 

Hook  Tender.  The  foreman  of  a  yarding  crew;  specifi- 
cally one  who  directs  the  attaching  of  the  cable  to  a 
turn  of  logs. 

Horse  Dam.  A  temporary  dam  made  by  placing  large 
logs  across  a  stream,  in  order  to  raise  the  water  be- 
hind it,  so  as  to  float  the  rear. 

Horse  Logs.  In  river  driving,  to  drag  stranded  logs 
back  to  the  stream   by  the  use  of  peaveys. 

Hovel.     A   stable   for   logging   teams. 

Humus.  That  portion  of  the  forest  floor  in  which  de- 
composition is  well  advanced. 


482  TIMBER  BONDS 

Hypsometer.      See  height  measure. 

Ice  a  Road.  To  sprinkle  water  on  a  logging  road  so 
that  a  coating  of  ice  may  form,  thus  facilitating  the 
hauling  of  logs. 

Ice  Guards.  Heavy  timbers  fastened  fan  shaped  about 
a  cluster  of  boom  piles  at  an  angle  of  approximately 
thirty  degrees  to  the  surface  of  the  water.  They  pre- 
vent the  destruction  of  the  boom  by  ice,  through  forc- 
ing it  to  mount  the  guards  and  be  broken  up. 

Increment.  The  volume  or  value  of  wood  produced  dur- 
ing a  given  period  by  the  growth  of  a  tree  or  of  a 
stand.  Three  kinds  of  increment  are  distinguished: 
Volume  increment  is  the  increase  in  volume  of  a  tree 
or  stand;  quality  increment  is  the  increase  in  value 
per  unit  of  volume;  price  increment  is  the  increase  re- 
sulting from  an  advance  in  the  price  of  forest  products 
independent  of  quality  increment. 

Index.  The  highest  average  actually  found  upon  a  given 
locality.  The  term  index  applied  to  stand,  diameter 
growth,  height  growth,  increment  and  present  and  fu- 
ture yield  is  the  equivalent  of  normal,  when  normal 
is  used  to  describe  the  assumed  standard  based  upon 
actual  measurement. 

Index  Forest.  That  forest  which  in  density,  volume  and 
increment  reaches  the  highest  average  which  has  been 
found  upon  a  given  locality.  Measurements  of  such 
a  forest  provide  a  standard  for  comparison  with  other 
forests  of  the  same  age  and  composition,  grown  under 
similar  conditions. 

Intermediate.  Having  the  crown  shaded  on  the  sides, 
but  free  to  light  on  the  top. 

Intermediate  Yield.  All  material  from  thinnings  or 
from  any  cuttings  not  intended  to  invite  or  assist  re- 
production.    See  yield. 

Intolerant.      Incapable   of  enduring  heavy  shade. 

Irregular  Forest.  Forests  in  which  the  trees  differ  con- 
siderably in  age. 

Jack  Chain.  An  endless  spiked  chain,  which  moves 
logs  from  one  point  to  another,  usually  from  the  mill 
pond  into  the  sawmill.     See  bull  chain. 

Jack  Ladder.     See  gangway. 

Jackpot.  1.  A  contemptuous  expression  applied  to  an 
unskillful  piece  of  work  in  logging.  2.  An  irregular 
pile  of  logs. 

Jam.  A  stoppage  or  congestion  of  logs  in  a  stream, 
due  to  an  obstruction  or  to  low  water. 

Jam  Cracker.      See  head  driver. 

Jammer.     An  improved  form  of  gin,  mounted  on  a  mov- 


WORDS   AND   PHRASES  483 

able  framework,  and  used  to  load  logs  on  sleds  and 
cars  by  horsepower. 

Jam — to  Break.  To  start  in  motion  logs  which  have 
jammed. 

Jay  Hawk.  To  strip  one  four-foot  length  of  bark  from 
a  tanbark  oak,  leaving  the  tree  standing. 

Jiboo.      To  remove  a  dog  from  a  log. 

Jigger.  To  pull  a  log  by  horsepower  over  a  level  place 
in  a  slide. 

Jim  Binder.      See  binder. 

Jobber.     A  logging  contractor  or   subcontractor. 

Jobber'.s  Sun.  A  term  applied  to  the  moon  in  a  jobber's 
or  contractor's  logging  camp,  on  account  of  the  early 
and  late  hours  of  commencing  and  ending  work. 

Jumper.  A  sled  shod  with  wood,  used  for  hauling  sup- 
plies over  bare  ground  into  a  logging  camp. 

Katydid.      See  logging  wheels. 

Key  Log.  In  river  driving,  a  log  which  is  so  caught  or 
wedged  that  a  jam  is  formed  and  held. 

Kilhig.  A  short,  stout  pole  used  as  a  lever  or  brace 
to  direct  the  fall  of  a  tree. 

Knot.      See    limb. 

Knot  Bumper.     See  limber. 

Knotter.     See   limber. 

Laker.     A  log  driver  expert  at  handling  logs  on  lakes. 

Landing.  1.  A  place  to  which  logs  are  hauled  or  skid- 
ded preparatory  to  transportation  by  water  or  rail. 
A  rough  and  tumble  landing  is  one  in  which  no  at- 
tempt is  made  to  pile  the  logs  regularly.  2.  A 
platform,  usually  at  the  foot  of  a  skid  road,  where 
logs  are  collected  and  loaded  on  cars.  A  lightning 
landing  is  one  having  such  an  incline  that  the  logs 
may  roll   upon  the  cars   without   assistance. 

Landing  Man.  One  who  unloads  logging  sleds  at  the 
landing. 

Land  Looker.      See  cruiser. 

Lapwood.      Tops  left  in  the  woods  in  logging. 

Lash  Pole.  A  cross  pole  which  holds  logs  together  in 
a   raft. 

Lazy  Haul.      See  jigger. 

Lead.  A  snatch  block  with  a  hook  or  loop  for  fasten- 
ing it  to  convenient  stationary  objects,  used  for  guid- 
ing the  cable  by  which  logs  are  dragged. 

Lead  Line.  A  wire  rope,  with  an  eye  at  each  end,  used 
to  anchor  the  snatch  block  in   setting  a  lead. 

Lead  Log.      See  brow   skid.      Head   log. 

Lightning  Landing.      See  landing. 

Limb.     To  remove  the  limbs  from  a  felled  tree. 


484  TIMBER  BONDS 

Limber.     One    who    cuts    the    limbs    from    felled    trees. 

Line  Horse.  The  horse  which  drags  the  cable  from  the 
yarding  engine  to  the  log  to  which  the  cable  is  to 
be  attached. 

Litter.  That  portion  of  the  forest  floor  which  is  not 
in  an  advanced  state  of  decomposition.     See  humus. 

Lizard.     See  dray. 

Loader.  One  who  loads  logs  on  sleds  or  cars.  See 
steam  loader. 

Loading  Chain.  A  long  chain  used  in  loading  or  piling 
logs  with   horses. 

Loading  Jack.  A  platformed  framework  upon  which 
logs  are  hoisted  from  the  water  for  loading  upon  cars. 

Loading  Tripod.  Three  long  timbers  joined  at  their  tops 
in  the  shape  of  a  tripod,  for  holding  a  pulley  block 
in  proper  position  to  load  logs  on  cars  from  a  lake  or 
stream. 

Locality.  An  area  considered  with  reference  to  forest 
producing  power;  the  factors  of  the  locality  are  the 
altitude,  soil,  slope,  aspect  and  other  local  conditions 
influencing   forest    growth. 

Locality  Class.  All  localities  with  similar  forest  pro- 
ducing  power. 

Lock  Down.  A  strip  of  tough  wood,  with  holes  in  the 
ends,  which  is  laid  across  a  raft  of  logs.  Rafting 
pins  are  driven  through  the  holes  into  the  logs,  thus 
holding  the  raft  together. 

Lodge.     See  hang  up. 

Logan.      See    pokelogan. 

Log  Deck.      The  platform  upon  a  loading  jack. 

Log  Dump.      See  landing. 

Log  Fixer.      See  rosser. 

Log  Rule.  1.  A  tabular  statement  of  the  amount  of 
lumber  which  can  be  sawed  from  logs  of  given  lengths 
and  diameters.  2.  A  graduated  stick  for  measuring 
the  diameters  of  logs.  The  number  of  board  feet  in 
logs  of  given  diameters  and  lengths  is  shown  upon  the 
stick. 

Log    Scale.      See    log    rule. 

Logger.     One  engaged  in  logging. 

Logging  Sled.  The  heavy  double  sled  used  to  haul  logs 
from   the  skidway  to  the  landing. 

Logging  Sled  Road.  A  road  leading  from  the  skidway 
or  yard  to  the  landing. 

Logging  Wheels.  A  pair  of  wheels,  usually  about  ten 
feet  in   diameter,  for  transporting  logs. 

Log  Jack.     See  gangway. 

Log.     To   cut   logs   and    deliver   them    at   a   place   from 


WORDS  AND   PHRASES  485 

which  they  can  be  transported  by  water  or  rail,  or, 
less  frequently  at  the  mill. 

TiOg  Watch.     See  head  driver. 

Logvvay.      See    gangway. 

Long  Butt.     See  butt  off. 

Loose-Tongued   Sloop.      See   swing   dingle. 

Lubber  Lift.  To  raise  the  end  of  a  log  by  means  of  a 
pry,  and  through  the  use  of  weight  instead  of  strength. 

Lug  Hooks.  A  pair  of  tongs  attached  to  the  middle  of 
a  short  bar,  and  used  by  two  men  to  carry  small  logs. 

Lumber.  To  log,  or  to  manufacture  logs  into  lumber, 
or  both. 

Lumberjack.      One    who   works   in    a   logging   camp. 

Lumberman.      One  engaged  in  lumbering. 

Many-Aged  Forest.  A  forest  through  all  parts  of  which 
many  different  age  classes  of  trees  tend  to  distribute 
themselves.  When  all  age  classes  are  thus  distributed, 
the  forest  is  "all-aged."  These  two  terms  replace 
selection  forest;  many-aged  being  substituted  for  im- 
perfect selection,  and  all  aged  for  perfect  or  ideal 
selection. 

Mature  Forest.  Forest  so  old  that  growth  in  height  is 
practically  at  an  end  and  diameter  growth  is  decreas- 
ing. 

Mark.  A  letter  or  sign  indicating  ownership,  which  is 
stamped  on  the  ends  of  logs. 

Mark  Caller.  In  sorting  logs,  one  who  stands  at  the 
lower  end  of  the  sorting  jack  and  calls  the  different 
marks,  so  that  the  logs  may  be  guided  into  the  proper 
channels  or  pockets. 

Marker.     One  who  puts  the  mark  on  the  ends  of  logs. 

Marking  Hammer.  A  hammer  bearing  a  raised  device 
which   is  stamped   on   logs  to  indicate  ownership. 

Marking  Hatchet.  A  hatchet  for  marking  trees.  A 
raised  die  is  cut  on  the  head  for  stamping  the  face  of 
the  blaze. 

Marking  Iron.      See  marking  hammer. 

Match.      See  mate. 

Mate.     To  place  together  in  a  raft  logs  of  similar  size. 

Mean  Annual  Increment.  The  total  increment  of  a  tree 
or  stand  divided  by  its  age  in  years. 

Merchantable  Length.  The  total  length  of  that  portion 
of  the  stem  which  can  be  used  under  given  conditions. 

Merchantable  Volume.  The  total  volume  of  that  por- 
tion of  the  tree  which  can  be  used  under  given  condi- 
tions. 

Mild  Humus.  Humus  in  a  condition  favorable  to  forest 
growth. 


486  TIMBER  BONDS 

Mill  Pond.  The  pond  near  a  saw  mill  in  which  logs  to 
be  sawn  are  held. 

Mixed  Forest.  Forest  composed  of  trees  of  two  or  more 
species. 

Monitor.     See  catamaran. 

Moss.  To  fill  with  moss  the  crevices  between  logs  in 
a  logging  camp. 

Mud.  To  fill  with  soft  clay  the  crevices  between  the 
logs  in  a  logging  camp. 

Mudboat.  A  low  sled  with  wide  runners,  used  for  haul- 
ing logs  in  swamps. 

Mudsill.  The  bed  piece  or  bottom  timber  of  a  dam  which 
is  placed  across  the  stream,  usually  resting  on  rocks 
or  in  mud. 

National  Forest  Reserve.  A  forest  which  is  the  property 
of  the  United  States. 

Nick.     See  undercut. 

Nose.  To  round  off  the  end  of  a  log  in  order  to  make  it 
drag  or  slip  more  easily. 

Notch.  To  make  an  undercut  in  a  tree  preparatory  to 
felling  it. 

Old  Field  Growth.     See  volunteer  growth. 

Old  Growth.     See  first  growth. 

Open.     See  crown  density. 

Overmature  Forest.  Overripe  forest  in  which,  as  the 
result  of  age,  growth  has  ceased  and  decay  set  in. 

Overtopped.  Having  the  crown  shaded  from  above,  al- 
though a  side  or  sides  may  be  free  to  light. 

Peaker.  1.  A  load  of  logs  narrowing  sharply  toward 
the  top,  and  thus  shaped  like  an  inverted  V.  2.  The 
top  log  of  a  load. 

Peavey.  A  stout  lever  five  to  seven  feet  long,  fittted 
at  the  larger  end  with  a  metal  socket  and  pike  and  a 
curved  steel  hook  which  works  on  a  bolt;  used  in 
handling  logs,  especially  in  driving.  A  peavy  differs 
from  a  cant  hook  in  having  a  pike  instead  of  a  toe 
ring  and  lip  at  the  end. 

Pecky.  A  term  applied  to  an  unsoundness  most  com- 
mon in  bald  cypress. 

Peeler.     See  Barker. 

Peggy.     See  pecky. 

Pickaroon.  A  piked  pole  fitted  with  a  curved  hook,  used 
in  holding  boats  to  jams  in  driving,  and  for  pulling 
logs  from  brush  and  eddies  out  into  the  current. 

Pick  the  Rear.     See  sack  the  rear. 

Pier  Dam.  A  pier  built  from  the  shore,  usually  slanting 
down   stream,  to  narrow  and   deepen  the  channel,   to 


WORDS   AND   PHRASES  487 

guide  logs  past  an  obstruction,  or  to  throw  all  the 
water  on  one  side  of  an  island. 

Pij;.     See  rigging  sled. 

Pig  Tail.  An  iron  device  driven  into  trees  or  stumps  to 
support  a  wire  or  small  rope. 

Pike  Pole.  A  piked  pole,  twelve  to  twenty  feet  long, 
used  in  river  driving. 

Pitch  Pocket.     A  cavity  in  wood  filled  with  resin. 

Pitch  Streak.     A  seam  or  shake  filled  with  resin. 

Plug  and  Knock  Down.  A  device  for  fastening  boom 
sticks  together,  in  the  absence  of  chains.  It  consists 
of  a  withe  secured  by  wooden  plugs  in  holes  bored  in 
the  booms. 

Pocket  Boom.  A  boom  in  which  logs  are  held  after  they 
are  sorted. 

Point.     See  gun. 

Pokelogan.  A  bay  or  pocket  into  which  logs  may  float 
off  during  a  drive. 

Pole.  A  tree  from  four  to  twelve  inches  in  diameter 
breasthigh.  See  tree  class.  A  small  pole  is  a  tree 
from  four  to  eight  inches  in  diameter  breasthigh.  A 
large  pole  is  a  tree  from  eight  to  twelve  inches  in 
diameter  breasthigh. 

Pond  Man.  One  who  collects  logs  in  the  mill  pond  and 
floats  them  to  the  gangway. 

Pontoon.     See  catamaran. 

Present  Yield.  The  amount  of  wood  at  present  contained 
in  given  trees  upon  a  given  area. 

Private  Forest.  A  forest  which  is  the  property  of  an 
in  dividual,  corporation,  company,  or  private  insti- 
tution. 

Prize  Logs.  Logs  which  come  to  the  sorting  jack  with- 
out marks  denoting  ownership. 

Pruning.  The  removal  of  branches  from  standing  trees 
by  natural  or  artificial  means.  The  clearing  of  the 
stem  through  the  death  and  fall  of  branches  for  want 
of  light  is  known  as  natural  pruning.  When  living 
branches  are  removed  by  cutting  them  close  to  the 
stem  the  operation  is  known  as  green  pruning;  when 
it  is  confined  to  dead  branches,  as  dry  pruning.  Some 
mill  men  will  not  buy  logs  known  to  have  been 
pruned. 

Pull  Back.     See  haul  back. 

Pull  Boat.  A  flatboat,  carrying  a  steam  skidder  or  a 
donkey,  used  in  logging  cypress. 

Pull  the  Briar.     To  use  a  crosscut  saw. 

Put  In.     In  logging,  to  deliver  logs  at  the  landing. 

Pure  Forest.     Forest  composed  of  trees  of  one  species. 


488  TIMBER  BONDS 

In  practice,  a  forest  in  which  eighty  per  cent  of  the 
trees  are  of  one  species. 

Quickwater.  That  part  of  a  stream  which  has  fall 
enough  to  create  a  decided  current. 

Rafter  Dam.  A  dam  in  which  long  timbers  are  set  on 
the  upstream  side  at  an  angle  of  twenty  to  forty 
degrees  to  the  water  surface.  The  pressure  of  the 
water  against  the  timbers  holds  the  dam  solidly 
against  the  stream  bed. 

Ram  Pike.  A  tree  broken  off  by  wind  and  with  a  splin- 
tered end  on  the  portion  left  standing. 

Rank.  To  haul  and  pile  regularly,  as,  to  rank  bark  or 
cord   wood. 

Ranking  Bar.     See  handbarrow. 

Ranking  Jumper.  A  wood-shod  sled  upon  which  tan- 
bark  is  hauled. 

Rave.  A  piece  of  iron  or  wood  which  secures  the  beam 
to  the  runners  of  a  logging  sled. 

Rear.  The  upstream  end  of  a  drive;  the  logs  may  be 
either  stranded  or  floating.  "Floating  Rear"  com- 
prises those  logs  which  may  be  floated  back  into  the 
current;  "dry  rear,"  those  which  must  be  dragged 
or  rolled  back. 

Receiving  Boom.     See  storage  boom. 

Regular  Forest.  Forest  in  which  the  trees  are  about 
the  same  age. 

Ride.  The  side  of  a  log  upon  which  it  rests  when  being 
dragged. 

Ride  a  Log.     To  stand  on  a  floating  log. 

Rigging.  The  cables,  blocks,  and  hooks  used  in  skid- 
ding logs  by  steam  power. 

Rigging  Sled.  A  sled  used  to  haul  hooks  and  blocks  on 
a  skid  road. 

Rigging  Slinger.  1.  A  member  of  a  yarding  crew, 
whose  chief  duty  it  is  to  place  chokers  or  grabs  on 
logs.  2.  One  who  attaches  the  rigging  to  trees,  in  steam 
skidding. 

Ring.     A  section  of  tanbark,  usually  four  feet  long. 

Ring  Rot.  Decay  in  a  log,  which  follows  the  annual 
rings  more  or  less  closely. 

Rise.  The  difference  in  diameter,  or  taper,  between  two 
points  in  a  log. 

River  Boss.     The  foremen  in  charge  of  a  log  drive. 

River  Driver.     One  who  works  on  a  log  drive. 

River  Rat.  A  log  driven  whose  work  is  chiefly  on  the 
river;    contrasted   with   Laker. 

Road  Donkey.  A  donkey  engine  mounted  on  a  heavy 
sled,  which  drags  logs  along  a  skid  road  by  winding 


WORDS   AND   PHRASES  489 

a  cable  on  a  drum.  It  has  a  second  drum  for  the  haul 
back. 

Road  (Jaiijj^.  That  portion  of  the  crew  of  a  logging  camp 
who  cut  out  logging  roads  and  keep  them  in  repair. 

Koad  Monkey.  One  whose  duty  it  is  to  keep  a  logging 
road  in  proper  condition. 

Roll.  The  crossbar  of  a  logging  sled  into  which  the 
tongue  is  set. 

RoHer.     See  Roll;  Upright  roller. 

Rolling  Dam.  A  dam  for  raising  the  water  in  a  shallow 
stream.  It  has  no  sluiceways,  but  a  smooth  top  of 
timber  over  which,  under  a  sufficient  head  of  water, 
logs  may  slide  or  roll. 

R()1I  the  liooiii.  To  roll  a  boom  of  logs  along  the  shore 
of  a  lake  against  which  it  is  held  bp  wind,  by  the 
use  of  a  cable  operated  by  a  steamboat  or  kedge. 
The  cable  is  attached  to  the  outer  side  of  the  boom, 
hauled  up,  then  attached  again,  thus  propelling  the 
boom  by  revolving  it  against  the  shore  when  it  would 
be  impossible  to  tow  it. 

Rolhvay.      See  landing. 

Rooster.     See  gooseneck. 

Root  Collar.  The  place  at  the  base  of  a  tree^where  the 
swelling  which  is  the  direct  result  of  the  ramifications 
of  the  roots  begins. 

Bosser.  One  who  barks  and  smooths  the  ridge  of  a 
log  in  order  that  it  may  slide  more  easily. 

Rotation.  The  period  represented  by  the  age  of  a  for- 
est, or  a  part  of  a  forest,  at  the  time  when  it  is  cut,  or 
intended  to  be  cut.  The  follov^^ing  classes  of  rota- 
tion are  distinguished:  Financial  Rotation,  under 
which  a  forest  yields  the  highest  net  interest  on  its 
capital  value,  calculating  at  compound  interest.  In- 
come Rotation,  under  which  a  forest  yields  the  high- 
est net  return,  calculating  without  interest.  Silvical 
Rotation,  the  rotation  most  favorable  to  the  natural 
reproduction  of  the  forest  under  a  given  method. 
Technical  Rotation,  under  which  a  forest  yields  the 
material  most  useful  for  a  certain  purpose.  Volume 
Rotation,  under  which  a  forest  yields  the  greatest 
quantity  of  the  material. 

Round  Timber.  Pine  trees  which  have  not  been  tur- 
pentined. 

Round  Turn.  A  space  at  the  head  of  a  logging  sled 
road,  in  which  the  sled  may  be  turned  around  with- 
out unhitching  the  team. 

Runner  Chain.  A  chain  bound  loosely  around  the  for- 
ward end  of  the  runners  of  a  logging  sled  as  a  bi'uke. 


490  TIMBER  BONDS 

Runner  Dog.  A  curved  iron  attached  to  the  runner  of 
the  hind  sled  of  a  logging  sled,  which  holds  the  loaded 
sled  on  steep  hills  by  being  forced  into  the  bed  of  tlie 
road  bj"  any  backward  movement. 

Runway.     See  gutter  road. 

Rutter.  A  form  of  plow  for  cutting  ruts  in  a  logging 
road  for  the  runners  of  the  sled  to  run  in. 

Sack  the  Rear.  To  follow  a  drive  and  roll  in  logs 
which  have  lodged  or  grounded. 

Sack  the  Slide.  To  return  to  a  slide  logs  which  have 
jumped  out. 

Saddle.  The  depression  cut  in  a  transverse  skid  in  a 
skid  road  to  guide  the  logs  which  pass  over  it. 

Sample  Tree.  A  tree  v.'hich  in  diameter,  height,  and 
volume  is  representative  of  a  tree  class.  A  class 
sample  is  a  tree  which  in  diameter,  height  and  volume 
represents  the  average  of  several  tree  classes. 

Sampson.  An  appliance  for  loosening  or  starting  logs 
by  horse  power.  It  usually  consists  of  a  strong,  heavy 
timber  and  a  chain  terminating  in  a  heavy  swamp 
hook.  The  timber  is  placed  upright  beside  the  piece 
to  be  moved,  the  chain  fastened  around  it,  and  the 
hook  inserted  low  down  on  the  opposite  side.  Lever- 
age is  then  applied  by  a  team  hitched  to  the  upper  end 
of  the  upright  timber. 

Sampson  a  Tree.  To  direct  the  fall  of  a  tree  by  means 
of  a  lever  and  pole. 

Sapling.  A  tree  three  feet  or  over  in  height,  and  less 
than  four  inches  in  diameter  breasthigh.  A  small 
sapling  is  a  sapling  from  three  to  ten  feet  high.  A 
large  sapling  is  a  sapling  ten  feet  or  over  in  height. 

Sap  Stain.      Discoloration  of  the  sap  wood. 

Saw  fitter.     See  Filer. 

Sawyer.     See  Faller. 

Scale  Book.  A  book  especially  designed  for  recording 
the  contents  of  scaled  logs. 

Scaler.      One  who  determines  the  volume  of  logs. 

Scalper.      See  Rosser. 

Scoot.      See  Dray. 

Scratclier.  An  instrument  used  for  marking  trees.  It 
usually  consists  of  a  hook-like  gouge  fastened  to  a 
fiat,  elliptical  iron  hoop,  with  wooden  handle  plates 
on  the  opposite  side  from  the  gouge. 

Season  Check.     See  Check. 

Second  Faller.     The  subordinate  in  a  crew  of  fallers. 

Second  Growth.  Forest  growth  which  comes  up  nat- 
urally after  cutting,  fire,  or  other  disturbing  cause. 


WORDS   AND   PHRASES  491 

See  Forest.  A  forest  composed  wholly  or  mainly  of 
trees  grown  from  seed. 

Seedling.  1.  A  tree  grown  from  seed.  2.  A  tree 
grown  from  seed  which  has  not  reached  a  height  of 
three  feet.     See  Tree  Class. 

Seed  Tree.  Any  tree  which  bears  seed  specifically,  a 
tree  left  by  the  logger  to  provide  the  seed  for  nat- 
ural reproduction. 

Self-Loading  Dam.     See  Rafter  dam. 

Semi-mature  Forest.  Forest  in  which  rapid  growth  in 
height  has  culminated,  but  diameter  growth  has  not 
begun  to  fall  off. 

Send  Up  Man.  That  member  of  a  loading  crew  who 
guides  the  logs  up  the  skids. 

Send  Up.  In  loading  to  raise  logs  up  skids  with  cant 
hooks,  or  by  steam  or  horse  power. 

Setting.  The  temporary  station  of  a  portable  saw  mill, 
a  yarding  engine,  or  other  machine  used  in  logging. 

Severance  Cutting.  The  cutting  of  all  trees  upon  a  nar- 
row strip  before  natural  pruning  has  far  advanced,  in 
order  that  the  trees  bordering  this  strip  may,  as  the 
result  of  partial  exposure,  become  wind-firm  through 
the  development  of  strong  roots.  Thus  severance  cut- 
tings are  made  to  strengthen  the  trees  on  the  edge 
of  a  stand  which  will  later  be  entirely  exposed 
through  the  removal  of  the  stand  which  now  pro- 
tects it. 

Shaft.     See  Stem. 

Shake.     A  crack  in  timber,  due  to  frost  or  wind. 

Shanty  Boat.      See  Wanigan. 

Shanty  Boss.     See  Chore  Boy. 

Shear  Boom.  A  boom  so  secured  that  it  guides  floating 
logs  in  the  desired  direction. 

Shear  Skid.     See  Fender  Skid. 

Shoot  a  Jam.     To  loosen  a  log  jam  with  dynamite. 

Shore  Hold.  The  attachment  of  the  hawser  of  a  raft 
of  logs  to  an  object  on  the  shore. 

Shore  Road.      See  Go-back  road. 

Shot  Holes.     Holes  made  in  wood  by  boring  insects. 

Side  Jam.  A  jam  which  has  formed  on  one  side  of  a 
stream,  usually  where  the  logs  are  forced  to  the  shore 
at  a  bend  by  the  current,  or  where  the  water  is  shal- 
low or  there  are  partially  submerged  rocks. 

Side  Mark.     See  Bark  Mark. 

Side  Winder.  A  tree  knocked  down  unexpectedly  by 
the  falling  of  another. 

Signal  Man.     One  who  transmits  orders  from  the  fore- 


492  TIMBER  nONDS 

man  of  a  yarding  crew  to  the  engineer  of  a  yarding 
donkey. 

Silvics.  1.  The  science  which  treats  of  the  life  of 
trees  in  the  forest.  2.  The  habit  of  behavior  of  a 
tree  in  the  forest. 

Silviculture.  The  art  of  producing  and  tending  a  for- 
est; the  application  of  the  knowledge  of  silvics  in 
the  treatment  of  a  forest. 

Single  Tree  Method.  That  method  of  conservative  lum- 
bering in  which  reproduction  from  self-sown  seed 
under  the  shelter  of  the  old  stand  is  invited  by  the 
cutting  of  single  trees.  This  cutting  may  be  made 
throughout  the  forest,  as  in  some  woodlots,  or  in  defi- 
nite portions  of  the  forest  in  turn. 

Single  Out.  To  float  logs,  usually  cypress,  one  at  a  time, 
from  the  woods  to  the  float  road. 

Sinker.      See   Deadhead. 

Sinker  Boat.     See  Catamaran. 

Skid.  1.  To  draw  logs  from  the  stump  to  the  skidway, 
landing,  or  mill.  2.  As  applied  to  a  road,  to  re- 
enforce  by  placing  rods  or  poles  across  it.  3.  A  log 
or  pole,  commonly  used  in  pairs,  upon  which  logs  are 
handled  or  piled ,  or  the  log  or  pole  laid  transversely 
in  a  skid  road. 

Skidder.  1.  One  who  skides  logs.  2.  A  steam  engine, 
usually  operating  from  a  railroad  track,  which  skids 
logs  by  means  of  a  cable.  3.  The  foreman  of  a  crew 
which  constructs  skid  roads. 

Skidding  Chain.     A  heavy  chain  used  in  skidding  logs. 

Skidding  Hooks.     See  Skidding  tongs. 

Skidding  Sled.     See  Dray. 

Skidding  Tongs.  A  pair  of  hooks  attached  by  links  to 
a  ring  and  used  for  skidding  logs. 

Skidding  Trail.     See  Gutter  Road. 

Skid  Grease.  A  heavy  oil  applied  to  skids  to  lessen  the 
friction  of  logs  dragged  over  them. 

Skid  Road.  1.  A  road  or  trail  leading  from  the  stump 
to  the  skidway  or  landing.  2.  A  road  over  which 
logs  are  dragged,  having  heavy  transverse  skids  par- 
tially sunk  in  the  ground,  usually  at  intervals  of  about 
five  feet. 

Skid  Up.  1.  To  level  or  re-enforce  a  logging  road  by 
the  use  of  skids.  2.  To  collect  logs  and  pile  them 
on  a  skidway. 

Skidway.  Two  skids  laid  parallel  at  right  angles  to  a 
road,  usually  raised  above  the  ground  at  the  end 
nearest  the  road.     Logs  are  usually  piled  upon  a  skid- 


WORDS   AND   PHRASES  493 

way  as  they  are  brought  from  the  stump  for  loading 
upon  sleds,  wagons  or  cars. 

Sky  Hooker.     See  Top  loader. 

Slack  Water.  In  river  driving  the  temporary  slacken- 
ing of  the  current  caused  by  the  formation  of  a  jam. 

Slant  Dam.     See  Rafter  Dam. 

Slash.  1.  The  debris  left  after  logging,  wind  or  fire.  2. 
Forest  land  which  has  been  logged  off  and  upon 
which  the  limbs  and  tops  remain,  or  which  is  covered 
with  del  iris  as  tho  result  of  fire  or  wind. 

Slashing;.     See  Slash. 

Sle<l  Fender.  1.  One  who  assists  in  loading  and  unload- 
ing logs  or  skidding  with  dray.  2.  A  member  of  the 
hauling  crew  who  accompanies  the  turn  of  logs  to  the 
landing,  unhooks  the  grabs,  and  sees  that  they  are 
returned  to  the  yarding  engine. 

Slide.  A  trough  built  of  logs  or  timber,  used  to  trans- 
port logs  down  a  slope. 

Slide  Tender,     One  who  keeps  a  slide  in  repair. 

Slip  Grab.  A  pear-shaped  link  attached  by  a  swivel  to 
a  skidding  evener  or  whiffletree,  through  which  the 
chain  is  passed.  The  chain  runs  freely  when  the  slip 
grab  is  held  sideways,  but  catches  when  the  grab  is 
straight. 

Slipper.     See  Rosser. 

Slip  Skids.     See  Glisse  skids. 

Sloop.     See  dray. 

Sloop  Logs.  To  haul  logs  down  steep  slopes  on  a  dray 
or  sloop  equipped  with  a  tongue. 

Slope.  The  gradient  of  the  land  surface.  In  forest  de- 
scription the  following  terms  are  used  to  define  the 
slope,  each  of  which  has  its  equivalent  in  percentages 
of  the  horizontal  distance  and  in  degrees: 

Level  =        0-      5%=       .0-   3.0° 

Gentle  =        5-  15%^     3.0-   8.5° 

Moderate    =      15-   30%=     8.5-16.5° 
Steep  =      30-   50  %=  16.5-26.5° 

Very  steep  =      50-100  %=  26.5-45.0° 
Precipitous=over   100%=over   45.0° 

Slough  Pig.  Usually  a  second  rate  river  driver  who  is 
assigned  to  picking  logs  out  of  sloughs  in  advance  of 
the  rear. 

Sluice.  To  float  logs  through  the  sluiceway  in  a  splash 
dam.     See  Flume. 

Sluice  Gate.  The  gate  closing  a  sluiceway  in  a  splash 
dam. 

Sluiceway.  The  opening  in  a  splash  dam  through  which 
logs  pass. 


494  ■      TOIBER  BONDS 

Snake.     See  Skid. 
Snaking  Trail.     See  Gutter  Road. 
Snatch  Team.     See  Tow  Team. 

Snib.      In  river  driving,   to  be   carried   away  purposely, 
but  ostensibly  by  accident,   on  the  first  portion  of  a 
jam  that  moves;  to  ride  away  from  work  under  guise 
of  being  accidentally  carried  off. 
Snipe.     See  Nose. 

Sniper.     One  who  noses  logs  before  they  are  skidded. 
Snow  a  Road.     To  cover  bare  spots  in  a  logging  road 

with  snow,  to  facilitate  the  passage  of  sleds. 
Snowbreak.     1.     The  breaking  of  trees  by  snow.     2.     An 

area  on  which  trees  have  been  broken  by  snow. 
Snow  Slide.     A  temporary  slide  on  a  steep  slope,  made 
by  dragging  a  large  log  through  deep  snow  which  is 
soft  or  thawing;   when  frozen  solidly  it  may  be  used 
to  slide  logs  to  a   point  where  they  can  be  reached 
by  sleds. 
Snub.     To  check,  usually  by  means  of  a  snub  line,  the 
speed  of  logging  sleds  or  logs  on  steep  slopes,  or  of  a 
log  raft. 
Softwood.     As  applied   to  trees  and  logs,   needle-leafed 

coniferous. 
Soil.     In  forest  description  the  origin,  composition,  depth 
and  moisture  of  the  forest  soil  are  considered  under 
soil.     Its  depth  is  defined  by  the  following  terms,  each 
of  which  has  its  equivalent  in  inches: 
Very  shalIow=less  than  six  inches 
Shallow  =six  to  twelve  inches 

Moderate         =twelve  to  twenty-four  inches 
Deep  =twenty-four  to  thirty-six  inches 

Very  deep      =over  thirty-six  inches 
The  moisture  of  the  soil  is  defined  by  the  following 

terms: 
Wet:      When   water   drips   from   a   piece   held   in   the 

hand  without  pressing. 
Moist:     When  water  drips  from  a  piece  pressed  in  the 

hand. 
Fresh:     When  no  water  drips  from  a  piece  pressed  in 

the  hand,  though  it  is  unmistakably  present. 
Dry:     When  there  is  little  or  no  trace  of  water. 
Very  Dry:       When  the  soil  is  parched.     Such  soils  are 
usually  caked  and  very  hard,  sand  being  an  excep- 
tion. 
Solid  Jam.     1.     In  river  driving,  a  jam  formed  solidly 
and  extending  from  bank  to  bank  of  a  stream.     2.     A 
drive  is  said  to  be  "in  a  solid  jam"  when  the  stream 


WORDS   AND   PHRASES  495 

is   full   of  logs  from   the   point  to   which   the   rear   is 
cleared  to  the  mill,  sorting  jack,  or  storage  boom. 

Sorting;  Boom.  A  strong  boom  used  to  guide  logs  into 
the  sorting  jack,  to  both  sides  of  which  it  is  usually 
attached. 

Sorting  Gap.     See  Sorting  Jack. 

Sorting  Jack.  A  raft,  secured  in  a  stream,  through  an 
opening  in  which  logs  pass  to  be  sorted  by  their  marks 
and  diverted  into  pocket  booms  or  the  down  stream 
channel. 

Spanish  Windlass.  A  device  for  moving  heavy  objects 
in  logging.  It  consists  of  a  rope  or  chain,  within  a 
turn  of  which  a  lever  is  inserted  and  power  gained  by 
twisting. 

Spiked  Skid.  A  skid  in  which  spikes  are  inserted  in 
order  to  keep  logs  from  sliding  back  when  being 
loaded  or  piled. 

Splash.  To  drive  logs  by  releasing  a  head  of  water 
confined  by  a  splash  dam. 

Splash  Boards.  Boards  placed  temporarily  on  top  of  a 
rolling  dam  to  heighten  the  dam,  and  thus  to  increase 
the  head  of  water  available  for  river  driving. 

Splash  Dam.  A  dam  built  to  store  a  head  of  water  for 
driving  logs. 

Si)Iit  Roof.  A  roof  of  a  logging  camp  or  barn  made  by 
laying  strips  split  from  straight-grained  timber.  The 
strips  run  from  the  ridge  pole  to  the  eaves,  and  break 
the  joints  with  other  strips,  as  in  a  shingle  roof. 

Spool  Donkey.  A  donkey  engine  for  winding  cable, 
equipped  with  a  spool  or  capstan,  instead  of  a  drum. 

Spool  Tender.  One  who  guides  the  cable  on  a  spool 
donkey. 

Spring  Board.  A  short  board,  shod  at  one  end  with  an 
iron  calk,  which  is  inserted  in  a  notch  cut  in  a 
tree,  on  which  the  faller  stands  while  felling  a  tree. 

S|)ring  Pole.  1.  A  springy  pole  attached  to  the  tongue 
of  a  logging  sled  and  passing  over  the  roll  and  under 
the  beam,  for  holding  the  weight  of  the  tongue  off 
the  horse's  neck.  2.  A  device  for  steadying  a  cross- 
cut saw,  so  that  one  man  can  use  it  instead  of  two. 

Sprinkler.  A  large  wooden  tank  from  which  water  is 
sprinkled  over  logging  roads  during  freezing  weather 
in  order  to  ice  the  surface. 

Sprinkler  Sletls.  The  sleds  upon  which  the  sprinkler 
is  mounted.  They  consist  of  two  sleds  whose  runners 
turn  up  at  each  end  fastened  together  by  cross  chains, 
and   each  having  a   pole,   in  order  that   the  sprinkler 


496  TIMBER  BONDS 

may  be  hauled  in  either  direction  without  being  turned 
around. 

Sprout.  A  tree  which  has  grown  from  a  stump  or  root. 
A  coppice  growth. 

Spud.     A  tool  for  removing  bark.     A  barking  iron. 

Spudder.      See   Barker. 

Stag.  To  cut  off  trousers  at  the  knee,  or  boots  at  the 
ankle. 

Stand.  All  growing  trees  in  a  forest  or  in  part  of  a 
forest. 

Standard.  A  tree  from  one  to  two  feet  in  diameter 
breasthigh.     See  Tree  class. 

Standard  Forest.     A  forest  of  standards. 

Stand  Class.  All  stands  of  similar  density,  height  and 
volume  for  a  given  age  and  diameter  and  a  given  lo- 
cality class.  The  index  stand  may  constitute  the  first 
stand  class. 

Stand  Fire.     See  forest  fire. 

Stand  Method.  That  method  of  conservative  lumbering 
in  which  reproduction  is  secured  from  self-sown  seed 
by  means  of  successive  cuttings  made  throughout  the 
mature  stand,  thus  leading  to  the  production  of  a  new 
stand  approximately  even  aged.  These  successive  cut- 
tings encourage  seed  production,  create  conditions 
favorable  to  the  growth  of  seedlings,  and  gradually 
remove  the  remaining  trees  of  the  mature  stand  as  the 
young  growth  develops.  The  series  of  cuttings  which 
vary  in  number  and  duration  according  to  the  degree 
of  difficulty  with  which  reproduction  is  effected,  is 
divided  into  the  following  four  kinds: 

Preparatory  cuttings  fit  the  stand  for  its  reproduc- 
tion by  the  removal  of  dead,  dying  or  defective  trees, 
and  prepare  the  ground  for  the  germination  of  seeds. 
A  stand  in  which  one  or  more  preparatory  cuttings 
have  been  made  is  in  the  preparatory  stage. 

Seed  cuttings  encourage  seed  production  by  the 
further  opening  of  the  stand,  and  admit  light  in 
quantity  favorable  for  the  development  of  young 
growth.  A  stand  in  which  one  or  more  seed  cuttings 
have  been  made  is  in  the  seeding  stage. 

Removal  cuttings  gradually  remove  the  mature: 
stand  which  would  otherv.ise  retard  the  development 
of  the  young  trees.  A  stand  in  which  one  or  more 
removal  cuttings  have  been  made  is  in  the  removal 
stage. 

Final  cutting  is  the  last  of  the  removal  cuttings,  in 
which  all  of  the  old  stand  still  remaining  is  cut. 

Stand   Table.      A    tabular    statement    of   the    number    of 


WORDS   AND   PHRASES  497 

trees  of  each  species  and  diameter  class  upon  a  given 
area. 

Starting-  Unr.     See  Gee  Throw. 

State  Forest.     A  forest  which  is  the  property  of  a  state. 

Stay  Boom.  A  boom  fastened  to  a  main  boom  and  at- 
tached upstream  to  the  shore  to  give  added  strength 
to  the  main  boom. 

Steam  Hauler.  A  geared  locomotive  used  to  haul  loaded 
logging  sleds  over  an  ice  road.  It  is  equipped  with  a 
spiked  metal  belt  which  runs  over  sprocket  wheels 
replacing  the  driving  wheels,  and  is  guided  by  a  sled, 
turned  by  a  steering  wheel,  upon  which  the  front  end 
rests. 

Steam  Jammer.      See  steam   loader. 

Steam  Loader.  A  machine  operated  by  steam  and  used 
for  loading  logs  upon  cars. 

Steam  Skidder.     See  skidder. 

Stem.  The  trunk  of  a  tree.  The  stem  may  extend  to 
the  top  of  the  tree,  as  in  some  conifers,  or  it  may  be 
lost  in  the  ramification  of  the  crown,  as  in  most  broad- 
leaf  trees.  In  tree  description  the  stem  is  described 
as  long  or  short,  straight  or  crooked,  cylindrical  or 
tapering,  smooth  or  knotty. 

Stem  Density.  The  extent  to  which  the  total  number  of 
trees  in  a  given  forest  approaches  the  total  number 
which  the  index  forest  of  the  same  age  and  composi- 
tion contains.  It  is  ordinarily  expressed  as  a  decimal, 
one  being  taken  as  the  numerical  equivalent  of  the 
stem  density  of  the  index  forest. 

Stem  Winder.      A  geared   locomotive. 

Stillwater.  That  part  of  a  stream  having  such  slight  fall 
that  no  current  is  apparent. 

Stock  Logs.  To  deliver  logs  from  stump  to  mill  or  rail- 
road. 

Storage  Boom.  A  strong  boom  used  to  hold  logs  in 
storage  at  a   sawmill. 

Straw  Boss.     A  sub-foreman  in  a  logging  camp. 

Stream  Jam.     See  Center  Jam. 

Stringer  Road.     See  Fore-and-Aft  Road. 

Strip  Method.  That  method  of  conservative  lumbering 
in  which  reproduction  is  secured  on  clean-cut  strips 
by  self-sown  seed  from  the  adjoining  forest. 

Strip-Stand  Method.  A  modification  of  the  stand  method 
in  which  reproduction  cuttings  are  not  made  simul- 
taneously throughout  the  stand,  but  the  stand  is  treat- 
ed in  narrow  strips  at  such  intervals  that  reproduc- 
tion cuttings  are  generally  going  on  in  three  strips  at 


498  TIMBER  BONDS 

one  time,  one  strip  being  in  the  removal  stage,  one  in 
the  seedling  stage  and  one  in  the  preparatory  stage. 

Stub.  That  portion  of  the  stem  left  standing  when  a 
tree  is  accidentally  broken  off. 

Stump.  That  portion  of  the  stem  below  the  cut  made 
in  felling  a  tree. 

Stump  Age.  The  age  of  a  tree  as  determined  by  the 
number  of  annual  rings  upon  the  face  of  the  stump, 
without  allowance  for  the  period  required  for  the 
growth  of  the  tree  to  the  height  of  the  stump. 

Stumpage.  The  value  of  timber  as  it  stands  uncut  in 
the  forest;  or,  in  a  general  sense,  the  standing  timber 
itself. 

Stump  Height.  The  distance  from  the  ground  to  the  top 
of  the  stump,  or  from  the  root  collar  when  the  ground 
level  has  been  disturbed.  On  a  slope  the  average  dis- 
tance is  taken  as  the  stump  height. 

Sun  Scald.  An  injury  to  the  cambium  caused  by  sudden 
exposure  of  a  tree  to  strong  sunlight. 

Suppressed.  Having  growth  more  or  less  seriously  re- 
tarded by  shade. 

Sui-face  Fire.     See  Forest  Fire. 

Swamp.  To  clear  the  ground  of  underbrush,  fallen 
trees  and  other  obstructions  preparatory  to  construct- 
ing a  logging  road  or  opening  out  a  gutter  road. 

Swamper.      One  who  swamps. 

Swami>  Hook.  A  large,  single  hook  on  the  end  of  a 
chain,  used  in  handling  logs,  most  commonly  in  skid- 
ding. 

Sway  Bar.  1.  A  strong  bar  or  pole,  two  of  which  couple 
and  hold  in  position  the  front  and  rear  sleds  of  a  log- 
ging sled.  2.  The  bar  used  to  couple  two  logging 
cars. 

Swell  Butted.  As  applied  to  a  tree,  greatly  enlarged  at 
the  base. 

Swing.     See  Gun. 

Swing  Dingle.  A  single  sled  with  wood-shod  runners 
and  a  tongue  with  lateral  play,  used  in  hauling  logs 
down   steep  slopes  on  bare  ground. 

Swing  Team.  In  a  logging  team  of  six,  the  pair  be- 
tween the  leaders  and  the  butt  team. 

Tail  Chain.  A  heavy  chain  bound  around  the  trailing 
end  of  logs,  as  a  brake,  in  slooping  on  steep  slopes. 

Taildown.  To  roll  logs  on  a  skidway  to  a  point  on  the 
skids  where  they  can  be  quickly  reached  by  the  load- 
ing crew. 

Tail  Hold.  1.  A  means  of  obtaining  increased  power  in 
moving  a  log  by  tackle.     The  cable  is  passed  through 


WORDS   AND   PHRASES  499 

a  block  attached  to  the  log  and  the  end  fastened  to  a 
stationary  object,  so  that  hauling  on  the  other  end 
gives  twice  the  power  which  would  be  attained  by 
direct  attachment  of  the  cable  to  the  log.  2.  The 
attachment  of  the  rear  end  of  a  donkey  sled,  usually 
to  a  tree  or  stump. 

Tail  Hook.     See  Dog. 

Tally  Board.  A  thin,  smooth  board  used  by  a  scaler  to 
record  the  number  or  volume  of  logs. 

Tally  Man.  One  who  records  or  tallies  the  measure- 
ments of  logs  as  they  are  called  by  the  scaler. 

Tank.     See  Sprinkler. 

Tank  Conductor.  One  who  has  charge  of  the  crew  which 
operates  a  sprinkler  or  tank,  and  who  regulates  the 
flow  of  water,  in  icing  logging  roads. 

Tank  Heater.  A  sheet  iron  cylinder  extending  through 
a  tank  or  sprinkler  in  which  a  fire  is  kept  to  prevent 
the  water  in  the  tank  from  freezing  while  icing  log- 
ging roads  in  extremely  cold  weather. 

Tanking.  The  act  of  hauling  water  in  a  tank,  to  ice  a 
logging  road. 

Tee.  A  strip  of  iron  about  six  inches  long  with  a  hole 
in  the  center,  to  which  a  short  chain  is  attached;  It 
is  passed  through  a  hole  in  a  gate  plank,  turned  cross- 
wise, and  so  used  to  hold  the  plank  when  tripped  in 
a  splash  dam. 

Thicket.     A  stand  of  saplings. 

Thin.     See  Crown  Density. 

Thinning.     The  removal  of  a  portion  of  the  trees  with 
the   object   of   improving   the   stand   without   inviting 
natural   reproduction.      The   following   kinds   of   thin- 
ning are   distinguished: 
Cleaning; 

Improvement   Thinning; 
Accretion  Thinning. 

Throw.     See  Wedge  a  Tree. 

Throw  Line.     See  Trip  Line. 

Throw  Out.     See  Frog. 

Tide.  A  freshet.  In  the  Appalachian  region  logs  are 
rolled  into  a  stream  and  a  "tide"  awaited  to  carry 
them  to  the  boom. 

Timberland.     See  Forest. 

Timber  Tract.     See  Forest 

Timber  Wheels.     See  Logging  Wheels. 

Toe  Ring.  The  heavy  ring  or  ferrule  on  the  end  of  a 
cant  hook.  It  has  a  lip  on  the  lower  edge  to  prevent 
slipping  when  a  log  is  grasped. 

Toggle  Chain.     A  short  chain  with  a  ring  at  one  end  and 


500  TIMBER  BONDS 

a  toggle  hook  and  ring  at  the  other,  fastened  to  the 
sway  bar  or  bunk  of  a  logging  sled,  and  used  to  regu- 
late the  length  of  a  binding  chain. 

Toggle  Hook.  A  grab  hook  with  a  long  shank,  used  on 
a  toggle  chain. 

Tolerance.     The  capacity  of  a  tree  to  endure  shade. 

Tolerant.     Capable  of  enduring  more  or  less  heavy  shade. 

Tonging.     Handling  logs  with  skidding  tongs. 

Top  Chains.  Chains  used  to  secure  the  upper  tiers  of 
a  load  of  logs  after  the  capacity  of  the  regular  bind- 
ing chains  has  been  filled. 

Top  Load.  A  load  of  logs  piled  more  than  one  tier  high, 
as  distinguished  from  a  bunk  load. 

Top  Loader.  That  member  of  a  loading  crew  who  stands 
on  the  top  of  a  load  and  places  logs  as  they  are  sent 
up. 

Total  Increment.  The  total  volume  of  wood  produced 
by  the  growth  of  a  tree  or  stand  up  to  the  time  it  is 
cut. 

Tote.     To  haul  supplies  to  a  logging  camp. 

Tote  Road.  A  road  used  for  hauling  supplies  to  a  log- 
ging camp. 

Tote  Sled.     See  Jumper. 

Tow  Team.  An  extra  team  stationed  at  an  incline  in  a 
logging  road  to  assist  the  regular  teams  in  ascending 
with  loaded  sleds. 

Trailers.  Several  logging  sleds  hitched  behind  one  an- 
other and  pulled  by  four  to  eight  horses  driven  by  one 
man,  thus  saving  teamster's  wages. 

Tramway.  A  light  or  temporary  railroad  for  the  trans- 
portation of  logs,  often  with  wooden  rails  and  oper- 
ated by  horsepower. 

Trap  Tree.  A  tree  deadened  or  felled  at  a  time  when 
destructive  bark  beetles  will  be  attracted  to  it  and 
enter  the  bark.  After  they  have  entered,  the  bark  Is 
peeled  and  exposed  to  the  sun,  burned  or  buried,  as 
the  case  may  require,  to  destroj*  the  insects. 

Travois.     See  Dray. 

Travois  Road.     See  Skid  Road. 

Tree  Analysis.  A  series  of  measurements  and  observa- 
tions upon  a  felled  tree  to  determine  its  growth  and 
life  history.  Tree  analyses  vary  with  their  purpose, 
and  may  include  all  or  a  part  of  the  following,  or  may 
require  additions  to  meet  special  needs:  The  usual 
measurements  comprise  the  length  of  each  section, 
the  diameter  inside  and  outside  the  bark,  the  total  age, 
the  age  and  width  of  the  sapwood,  the  diameter 
growth  at  given  periods  on  the  upper  end  of  each  sec- 


WORDS   AND   PHRASES  501 

tion,  the  diameter  breasthigh,  the  total  height,  and 
the  clear,  used  and  merchantable  lengths.  The  ob- 
servations determine  the  class,  form  and  condition  of 
the  tree.  Although  a  tree  analysis  may  include  many 
combinations  of  the  above  measurements,  two  im- 
portant classes  are  distinguished:  A  Stump  analysis 
includes  measurements  of  the  diameter  growth  at 
given  periods  upon  the  stump  only,  no  matter  what 
other  measurements  it  may  comprise.  A  Section 
analysis  includes  measurements  of  the  diameter 
growth  at  given  periods  upon  more  than  one  section. 
When,  in  a  stump  or  section  analysis,  the  measure- 
ment of  the  diameter  growth  at  given  periods  covers 
only  a  portion  of  the  total  diameter  growth,  the 
analysis  is  a  partial  stump  analysis  or  a  partial  sec- 
tion analysis. 

Tree  Class.  All  trees  of  approximately  the  same  size. 
The  following  tree  classes  are  distinguished:  Seed- 
ling, shoot,  small  sapling,  large  sapling,  small  pole, 
large  pole,  standard,  veteran. 

Tree  Scribe.     See  Scratcher. 

Trip.     See  Wedge  a  Tree. 

Trip  a  Dam.  To  remove  the  plank  which  closes  a  splash 
dam. 

Trip  Line.  A  light  rope  attached  to  a  dog  hook,  used  to 
free  the  latter  when  employed  in  breaking  a  jam,  a 
skidway,  or  a  load.     See  haul  back. 

Tripsin.  A  timber  placed  across  the  bottom  of  a  sluice- 
way in  a  splash  dam,  against  which  rest  the  planks  by 
which  the  dam  is  closed. 

Trough  Roof.  The  roof  on  a  logging  camp  or  barn, 
made  of  small  logs  split  lengthwise,  hollowed  into 
troughs  and  laid  from  ridge  pole  to  eaves.  The  joints 
of  the  lower  tier  are  covered  by  inverted  troughs. 

Trunk.     See  Stem. 

Turkey.  A  bag  containing  a  lumberjack's  outfit.  To 
"histe  the  turkey"  is  to  take  one's  personal  belong- 
ings and  leave  camp. 

Turn.  1.  A  single  trip  and  return  made  by  one  team 
in  hauling  logs.  A  four-turn  road  is  a  road  the  length 
of  which  will  permit  of  only  four  round  trips  per  day. 
2.  Two  or  more  logs  coupled  together  end  to  end  for 
hauling. 

Turnout.  A  short  side  road  from  a  logging-sled  road, 
to  allow  loaded  sleds  to  pass. 

Twin  Sleds.     See  Logging  Sled. 

Tuister.     See  Spanish  windlass. 

Twitch.     See  Skid. 


502  TIMBER  BONDS 

Two-Storied  Forest.  Comprising  on  the  same  area  two 
classes,  which  vary  considerably  in  height,  composed 
of  trees  of  different  species.  The  term  is  not  applicable 
to  forest  under  reproduction,  in  which  the  appearance 
of  two  stories  is  the  temporary  result  of  an  incom- 
plete process,  but  to  those  forests  of  which  the  two 
stories  of  growth  are  a  natural  and  permanent  fea- 
ture. In  a  two-storied  forest  the  taller  trees  form  the 
over-wood,  or  upper  story.  The  shorter  trees  form 
the  under-wood,  or  lower  story. 

Underbrush.  All  large,  woody  plants,  such  as  witch- 
hobble,  laurel,  striped  maple  and  devil's  club,  which 
grow  in  a  forest,  but  do  not  make  trees. 

Undercut.  The  notch  cut  in  a  tree  to  determine  the  di- 
rection in  which  the  tree  is  to  fall,  and  to  prevent 
splitting. 

Undercutter.  A  skilled  woodman  who  chops  the  under- 
cut in  trees  so  that  they  shall  fall  in  the  proper  direc- 
tion. 

Undergrowth.  The  ground  cover,  underbrush,  and  young 
trees  below  the  large  sapling  stage. 

Undei'wood.     See  Two-Storied  Forest. 

Uneven-Aged  Forest.     See  Irregular  Forest. 

Union  Drive.  A  drive  of  logs  belonging  to  several  own- 
ers, who  share  the  expense  pro  rata. 

Upper  Story.     See  Two-Storied  Forest. 

Upright  Roller.  A  flanged  roller  placed  upright  at  a 
bend  in  a  skid  road  to  direct  the  cable. 

Used  Length.  The  sum  of  the  lengths  of  logs  cut  from 
a  tree. 

Used  Volume.  The  sum  of  the  volumes  of  logs  cut  from 
a  tree. 

Valuation  Area.  A  forest  area  of  known  size  upon  which 
measurements  or  other  detailed  studies  are  made  for 
the   determination   of  the   stand   or  yield. 

Valuation  Survey.  The  measurement  or  other  detailed 
study  of  the  stand  upon  a  valuation  or  experiment 
area.  Two  kinds  of  valuation  survey  are  distinguished: 
1.  The  strip  survey  comprises  the  measurement 
of  a  stand,  or  a  given  portion  of  it,  upon  strips  usual- 
ly one  chain  wide.  2.  The  plot  survey  comprises  the 
measurement  of  the  stand,  or  a  given  portion  of  it, 
upon  isolated  plots  not  in  the  form  of  strips. 

Valuer.     See  Cruiser. 

Van.  The  small  store  in  a  logging  camp  in  which  cloth- 
ing, tobacco  and  medicine  are  kept  to  supply  the  crew. 

Veteran.     A  tree  over  two  feet  in  diameter  breasthigh. 

Veteran  Forest.     A  forest  of  veterans. 


WORDS   AND    PHRASES  503 

Ail-gin  Forest.     See  First  Growth. 

Volume  Table.  A  tabular  statement  of  the  volume  of 
trees  in  board  feet  or  other  units  upon  the  basis  of 
their  diameter  breasthigh,  their  diameter  breast- 
high  and  height,  their  age,  or  their  age  and  height. 

Volunteer  Growth.  Old  field  growth.  Young  trees 
which  have  sprung  up  in  the  open,  as  pine  in  old  fields 
or  cherry  and  aspen  in  burns. 

Wagon  Sled.     See  Logging  Sled. 

Wanigan.  A  houseboat  used  as  sleeping  quarters  or  as 
kitchen  and  dining  room  by  river  drivers. 

Water  Ladder.  Pole  guides  up  and  down  which  a  barrel 
slides  in  filling  a  sprinkler  by  horsepower. 

Water  Slide.     See  Flume. 

AVedge  a  Tree.  To  topple  over  with  wedges  a  tree  that 
is  being  felled. 

Weed  Tree.  A  tree  of  a  species  which  has  little  or  no 
value. 

Wet  Slide.     See  Flume. 

Whiffletree  Xet-kyoke.  A  heavy  logging  neckyoke,  to  the 
end  of  which  short  whiffletrees  are  attached  by  rings. 
From  the  ends  of  the  whiffletrees  wide  straps  run  to 
the  breeching,  thus  giving  the  team  added  power  in 
holding  back  loads  on  steep  slopes. 

White  Water  Man.  A  log  driver  who  is  expert  in  break- 
ing jams  on  rapids  or  falls. 

AVidow  ^Maker.  A  broken  limb  hanging  loose  in  the  top 
of  a  tree,  which  in  its  fall  may  injure  a  man  below. 
Or  a  breaking  cable. 

AA'igwani.  Trees  lodged  in  such  a  way  that  they  support 
each  other. 

AVindbreak.     The  breaking  of  trees  by  wind. 

AA'indfall.  A  tree  thrown  by  wind.  An  area  on  which 
the  trees  have  been  thrown  by  wind. 

AA'indfirm.     Able  to  withstand  heavy  wind. 

AVindshake.     See  Shake. 

AVindslash.     See  Windfall. 

AA'ing  I>ani.     See  Pier  Dam. 

AA'ing  Jam.  A  jam  which  is  formed  against  an  obstacle 
in  the  stream  and  slants  upstream  until  the  upper  end 
rests  solidly  against  one  shore,  with  an  open  channel 
for  the  passage  of  logs  on  the  opposite  side. 

AA'oodland.     See  Forest. 

AVoodlot.      See   Forest. 

AA'oodpeeker.     A  poor  chopper. 

AA'orking.  The  harvesting  of  the  final  yield  under  a 
working  plan.  Working  is  annual  when  cuttings  are 
made  each  year;    periodic  when  they  are  made  after 


504  TIMBER  BONDS 

uniform  periods  of  two  or  more  years;  and  intermit- 
tent when  they  are  made  at  irregular  intervals.  Sus- 
tained annual,  periodic,  or  intermittent  workings  are 
those  under  which  the  amount  of  wood  cut  is  so  regu- 
lated that  the  productive  capacity  of  the  forest  does 
not  decrease,  but  produces  a  sustained  yield,  which 
likewise  may  be  annual,  periodic  or  intermittent. 

AVorking  Area.  The  total  forest  area  managed  under  a 
working  plan. 

AVorking  Plan.  A  detailed  and  comprehensive  scheme 
for  the  best  permanent  use  of  the  forest. 

AVorking  Plan  Renewal.  The  preparation  of  a  new  work- 
ing plan  for  a  given  contract,  when  the  present  work- 
ing plan  has  been  carried  out,  or  changed  conditions 
require  its  revision. 

Wrapper  Chain.     See  Binding  Chain. 

Yard.     See  Landing. 

Yarding  Donkey.  A  donkey  engine  mounted  upon  a 
heavy  sled,  used  in  yarding  logs  by  drum  and  cable. 

Yield.  The  amount  of  wood  at  present  upon,  or  which 
after  a  given  period  will  be  upon,  a  given  area.  See 
Present  Yield;  Future  Yield;  Accident  Yield;  Inter- 
mediate Yield;  Pinal  Yield;  Working. 


lir.  snilTHERN  REGIONALLIBRARY  FACILITY 


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SOUTHERN  BRANCH. 

UNIVERSITY  OF  CALIFORNIA, 

LIBRARY, 

'LOS  ANGELES,  CALiF. 


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